Real Estate Development & New Home Construction

User Stats

3
Posts
7
Votes
Jeremie Edwards
  • Rental Property Investor
  • Lebanon, OR
7
Votes |
3
Posts

Building three Duplexes in the valley, on one taxlot.

Jeremie Edwards
  • Rental Property Investor
  • Lebanon, OR
Posted Aug 2 2022, 10:32

My partners and I just broke ground on a 6 unit build. Its been about a year of red tape and other issues, but we finally got it off the ground! 

I thought it would be fun to do a thread as we progress through the project and share what we are learning, as this is the biggest project we have done.

So far what we have learned is everything takes longer then expected. The engineering, both structural and civil took months to start due to a backlog of projects. The city approval added even more time. From the financing aspect, I was surprised how simple and easy getting a commercial loan as compared to a personal loan.

Here are some basic numbers. We have a build contract for 1.2 mil. We are financing for around 900k of that, and using cash for the rest. The appraised value upon completion is 1.8. We are building 3 bd 2.5bth units, that will rent for 2000-2200 a month. From a numbers standpoint, it looks really good.

Our current plan is to keep the project, and as such we have the ability to covert the loan over to a 10 over 30 commercial loan.

I will add to this post as the project progresses.

The first foundation is being set up, the contractor sent me this today. 

Portland, Oregon

User Stats

64
Posts
20
Votes
Matthew Morrow
  • Rental Property Investor
  • Lehigh Valley, PA
20
Votes |
64
Posts
Matthew Morrow
  • Rental Property Investor
  • Lehigh Valley, PA
Replied Aug 2 2022, 10:40

@Jeremie Edwards This is awesome. Look forward to seeing the progress!!

User Stats

32
Posts
25
Votes
Dallas Regimbal
  • Real Estate Agent
  • Oregon
25
Votes |
32
Posts
Dallas Regimbal
  • Real Estate Agent
  • Oregon
Replied Aug 4 2022, 09:25

@Jeremie Edwards Congrats on finally being able to break ground after a year of being held up, hopefully the rest of the project doesn't have any delays! It sounds like the numbers are solid and you have room to operate. I am excited to see the project progress over time and what it looks like upon completion!

User Stats

1
Posts
0
Votes
Ryan Rudnick
  • Rental Property Investor
  • Bend, OR
0
Votes |
1
Posts
Ryan Rudnick
  • Rental Property Investor
  • Bend, OR
Replied Aug 11 2022, 01:03

Thanks for sharing the numbers and experience so far with your project. Real estate development discussion seems to be relatively scarce here on BP, so this is great. I am planning to implement a similar build-to-rent strategy with my vacant lots in Bend, so this post was informative and encouraging. Please do post updates!

User Stats

113
Posts
11
Votes
Jim Flynn
  • Asheville NC
11
Votes |
113
Posts
Jim Flynn
  • Asheville NC
Replied Sep 17 2022, 11:33

Are you planning to do more?