What’s a realistic Cost VS Value % to expect on a multi-family new build?

Land & New Construction
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What’s a realistic Cost VS Value % to expect on a multi-family new build?

Evan Bambrick
Investor · Chattanooga, TN · Member since 2019 · 19 posts · 12 votes

I.E. All cash invested $1m

Market value: $1.2m

= 83% cost to value (17% profit)

What are people usually aiming for at a minimum? 

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  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    2y
    Quote from @Evan Bambrick:

    I.E. All cash invested $1m

    Market value: $1.2m

    = 83% cost to value (17% profit)

    What are people usually aiming for at a minimum? 


     always 20% or greater. we do it with our profit in columbus OH. it's all about the land, density, and floorplan size. get someone who has more experience in design and agency and development. development has been doing this for years and years so just stick to what works. compact, three story walk up style is what we build for investors and ourselves. 

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