Cost of building a Fourplex
Hi. I don't own any homes and plan to buy my first real estate. I'm thinking the possibility of building a fourplex in the greater Atlanta area. At first, I thought about buying an old one, but the Atlanta market is crazy hot. Nothing good ever hits the market. I just want to know what price I would be looking at. I want to build a decent fourplex, each unit consisting of 2 beds, 2 baths. If I buy a lot at 100k at a decent location, do you guys think I can get it built in 300 to 350k. We are looking at 8 beds and 8 baths.
Most Popular Reply
Let's imagine:
100K for the lot
4 units at 1000 sf each, 2 beds, 2 baths each. These would be small units. 4000 SF total.
I don't know what your cost of construction is, but up here we are looking at roughly $175/sf. That means $700K of construction cost. I'd say NO in your case, unless you can magically cut the cost in half. Even more challenging if you want to have larger / more lux units. This is the reason that so many of our clients - even in hot markets like Boston - are renovating existing buildings rather than building new.