New construction apartments
Anyone out there ever built an apartment building from the ground up? Can you shed some light on price/sq foot it cost you to build (not including the cost of the land). What type of cash on cash return can I expect from new construction? A few years ago, the small multis I have in my portfolio cash flow around 20-25% cash on cash return. I understand cash flow on new construction probably won’t be anywhere near as high, but it’s something I’m trying to learn more about as all the deals in my area have been non-existent and I have not purchased anything for the past year. How does the loan from the bank work, approval process from the town ect? I’m completely new to new construction, the only expierance I have with the town are simply pulling permits on a few rehabs I have done. What is the best number of units to build per building to be profitable? 12? 16? 20? I only have about $250k in cash available right now.