Looking at a lot that is 8 to 16 acres for new construction of multi family units. It's a growing community with future city development and a large rental market as it sits between 2 larger cities that feed the housing market. There is only 1 apartment complex within 10 to 20 miles in either direction to the larger cities.
For a new construction project, should I consider multiplex units, apartments, or townhome style units? What are the pros and cons of either when considering building for rental?
Thank You for you input.
I would take a close look at the market and see what the supply and rent characteristics look like for each type of build. After gathering that data, start running a cost analysis that shows the total installed cost of each type of asset. You can do a conceptual level cost-benefit with this data.
I would additionally think about the exit on a property like this from an investors point of view.... what are the characteristics of the other supply in the market. Will you be competing heavily against single family homes? If so, a town home style may be more attractive. Does the market have room for a lower rent product? If so, maybe an apartment is more attractive.