Building Small Multi-Family? Is it worth it?

[Jeremy Kleier]

We are considering building small multifamily units? Thinking 4 to 8 units in B class neighborhoods. 

Is anyone currently doing this? 

What are the risks? 

The hypothesis we are trying to poke holes in:

Building new properties for long term buy and hold (think 30 years plus).

- Less CapX over the lifetime of the property. 
- Instead of buying other multifamily's on the market we can build for the same price.

[Jim Hiler]

@Jeremy Kleier Due to the difficulty in finding multifamily property in my area I'm considering the same thing. I'm trying put a plan together to locate lots that are zoned for multifamily and then figure out how many units can be built on the lots. 

I'm figuring that the cost to build plus the cost of the land is about same as things are selling for now. $150 / SF +/-.

Let me know if you decide to go ahead with it.