New construction multifamily deal
Hi BP,
Just wanted to share a deal I’m doing in regards to new construction multifamily in South Phoenix
20 units, 2 bed 2 bath 800 sq ft
Stainless steel appliances
Stackable front loader washer/dryer
Bottom stories get backyards
Covered parking
$95,000 per unit to build ($1,900,000 total, includes all soft/hard costs except land and closing costs)
Land: $225,000
Rent: $1,250/month per unit ($300,000 annually)
Sale price $200,000 per door ($4,000,000 total)
Total profit after commissions: $1,820,000
Cap rate for buyer: 5.7%
Lined up for almost 80 units next year, just wanted to share one of the deals I put together, develop, and build. I’d love to hear the communities thoughts on a deal like this and if others are doing similar
Most Popular Reply
This sounds very great. I'm trying to do something similar but at a FAR lower scale....build a 4 unit multifamily with 3 bedroom/2 bath in each. Trying to learn the process with this and hopefully can scale up. Looking in Ohio. Found a designer/architect for the building, have a builder....now I'm trying to understand the land buying process. Any tips would be great.