Real Estate Agent · Palm Coast, FL · Member since 2018 · 363 posts · 243 votes
I have brought this up a few times in other discussions and figured best to a new post so everyone can follow along and see how the build is coming. Here are the specs on the property.
Duplex, 3 Beds 2 Baths 2 Car garage on for each unit.
The lot is 80x125 or .23 Acre.
Each unit is 1314 sqft under Air with total slab foot print of 3922 sqft.
All flooring is tile, with granite surfaces in kitchen and baths. Bath's have tile walls, around shower (shower floor is tile too) and tub.
Washing are dryer hook ups in garage but not provide.
All bedrooms will have ceiling fan hook up, but only a light will be provided. Tenant can provide fan if they wish.
Ceiling height is 9-4'' , master has 10' tray.
Rear covered lanai that is 12x7 and fully fenced backyard bifurcated for privacy.
Projected rent is between $1900-2100 a per unit.
I'll update the discussion as progress continues and if you are invested in the numbers or more details please feel free to reach out to.
Real Estate Agent · Palm Coast, FL · Member since 2018 · 363 posts · 243 votes
3y
Went by today to check on progress, Shingle pack are on roof and hopefully they will be laid down tomorrow or early next week. All HAVC has ran on both side. About 80% pre drywall electrical and plumbing is completed. Spoke with electrical contractor about Data panel placement in the Master bedroom closest and RJ45 runs. Hope to be dried in over the next few weeks. Already have a verbal commitment from a current tenant in another property looking to upgrade from a 2/2 to this new 3/2. Going to be asking $2100 per side.
Real Estate Agent · Palm Coast, FL · Member since 2018 · 363 posts · 243 votes
3y
Well after a window delivery mess up we got the proper size windows and dry wall is up. Looking good and about 90 day out from getting our C of O and already have numerous inquiries by perspective tenants. Going to officially list it about 45 days out. Need to get another one started ASAP!
Accountant · Member since 2020 · 9 posts · 6 votes
3y
this is awesome! I am looking to do the same thing. How did you determine what to pay for the land prior to moving forward? you had to have had numbers ready prior to buying the land and then got with an artchitect? how did you determine your cost prior to buying?
Being a realtor allowed me to be very familiar with he the market and what total price I could afford or pinch to an investor to build at and still be able to have a ROI that cash flows. I will say because the property values were raised so much this last assessment, the ROI doesn't look as good, but it still cash flows. Didn't use an architect, used an existing plan. If you would like to know more specifics feel free to call to me or DM. BE happy to talk more about it.
Real Estate Agent · Palm Coast, FL · Member since 2018 · 363 posts · 243 votes
3y
Stopped by the build today a to show another investor and while I was there snapped a few pictures. Inside has been painted, flooring is going in and the stucco is complete and currently painting outside. All Sherwin Williams colors, the exterior is Ocean Fog, the inside, like all our rentals is SeaSalt in SuperPaint Satin. Even the properties we manage are the same interior color to save time, confusion and money.
Real Estate Broker · Palm Coast, FL · Member since 2023 · 23 posts · 10 votes
3y
It's coming along nicely! I will be doing the property management for it and anxious to get it completed and get some good tenants in place to get it cash flowing. Hoping to start screening tenants in June for a July 1st move in.
Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
3y
@Joseph Beilke where did you budget the construction at as a total/PSF, and about where do you think it will end up as a total/PSF? On your timing it seems like you're probably past most of the pricing volatility the last few years, but I'm always interested in the 'plan' vs 'reality' comparison.
We didn't do a PSF evaluation. We had a range for market rents. Reversed engineered how much we could build for and pay for a lot and still get our desired cash flow . Then once we figured out what that number was we shopped around to small Builders and GC and found one that would build it within our budget. We also has to take into consideration that our ROI isn't as important, one of the main goals is to have physical asset that provide a tax shelter for other income.
Were building at $161 PSF under air. We are looking $1.56 PSF for rent. or $49,200 a year Gross income. Which bring us to .0955 of the 1% rule. Those numbers were expectable to us. Now of course Vac, CapEx, Management, come out of that. But on paper those will be zero when expensed out fully by another LLC which will sublet to actual tenants.
Stopped by the build today a to show another investor and while I was there snapped a few pictures. Inside has been painted, flooring is going in and the stucco is complete and currently painting outside. All Sherwin Williams colors, the exterior is Ocean Fog, the inside, like all our rentals is SeaSalt in SuperPaint Satin. Even the properties we manage are the same interior color to save time, confusion and money.
Investor · Statewide, MO · Member since 2011 · 814 posts · 425 votes
3y
Wow! Looking good. I do build to rents too and haven't built with this style. Is this all block exterior with stucco? Those trusses span pretty dang far, I bet this makes for a pretty good build.
Can you tell me how the labor for the block is charged? Is it piece rate, by the block? We use 1 piece tub/showers to make ours a little more maintenance free. At your pricepoint, do your end users not mind the absence of ceiling fans?
Thanks for the thread. It's neat to see other similar projects take shape.
this is awesome! I am looking to do the same thing. How did you determine what to pay for the land prior to moving forward? you had to have had numbers ready prior to buying the land and then got with an artchitect? how did you determine your cost prior to buying?
Mike really cool project!
Heather, let me know if you found what you are looking for. I am currently working with a company that is building several models in about 5 cities in FL, including a duplex model and they have it set up where you are are the builder in order to keep the costs down. I have sent several investors to them and they are very happy. Let me know if you want more details, just DM me.
Real Estate Agent · Member since 2021 · 52 posts · 12 votes
3y
Hey congrats on your success first off! I just had an amazing meeting
with a lender in my local area who does a lot of development loans
especially 100m+ which they can close in 30 days. They might be
interested in this if you continue to scale up, I can refer you to them, they prefer 5m+ but I
believe they will consider any great loan if you can provide the
documentation.
They are currently in the process of helping me finance my first 30
unit apartment building, I only had 10% to put down but it's also being
sold under market value so that also helped. I talked to so many lenders
who constantly said they could help and then shot me down. If you need
help let me know and I can refer you if you need it and can provide
proof of funds and other documentation they may ask for.