Condo, townhouse or apartment ???

Question

Hello, I have just purchased a lot in SW Florida to build 3 or 4 unit multifamily to resell it when done. I am trying to find out which way is the best to classify them at the end. Each one has its own pros and cons depending on cost, HOA, easiness to sell (willing to sell the whole building) etc.

Greg Dickerson · Answer

You need to look at comps and run the numbers  to build. Townhouses will be less per square foot to build than condos so you need to  work it backwards. Some markets condos sell for more some its townhouses so you need to know your market.

Evan Polaski · Answer

@Cem Gumus, are condos selling in the area?  What about apartment buildings?  If your costs are the same for each, I would guess you get the best price per unit with the condos (granted I know nothing about your property or market).

Real estate is at a shortage in general, in many major metros.

Since it seems you want to sell regardless, and not be a landlord, if your market is like mine, I would go condos.  From what I have seen, the sale price of a condo is likely going to be higher than the sale price per unit of an apartment building.

Rodney Robinson · Answer

@Cem Gumus

Which choice presents the highest wealth building potential (holding the rentals, selling off the condos) and at what level of risk (likelihood the condos will sell)?

Is that level of risk acceptable to you?

Which level of risk is acceptable to you and can you accept the potential returns from going that route ?

What was the plan when you purchased?