Hey BP! I've been doing some brrr 's in my area the last two years . While I've found some good properties, it's hard finding them. Thinking about building new duplex's . With me being the GC, and subbing everything out. Is there anyone that is currently doing this and do you have any pointers or helpful tips!
Investor · Collierville, TN 38017 · Member since 2017 · 612 posts · 453 votes
10mo
Drew, this is a solid move, especially if you’re already comfortable acting as your own GC. When deals dry up, the people who win are the ones who learn how to create inventory instead of chasing it.
A few things from what we’re doing in Memphis:
1. Run the numbers like a BRRRR, not like a flip.
Your build cost + holding cost + financing needs to land you at 70–75 percent of ARV to make the refinance smooth. New builds feel cheaper because the finishes are modern, but overages are real, pad in a 10–15 percent contingency.
2. Use layouts that rent fast and refi well.
Our duplex builds stick to:
3/2 each side or 2/2 with open floor plans
identical layouts for material efficiency
durable mid-grade finishes (LVP, shaker cabs, matte black hardware)
3. Get your subs locked in early.
The fastest way for a GC-owner to get burned is letting subs run your schedule. Line up your framer, plumber, electrician, and roofer before you even break ground.
4. Don’t skip the rent comps just because it’s new construction.
Appraisers will still use nearby rental stock. Make sure the area actually supports the rents you modeled.
5. Confirm your exit with your lender ahead of time.
Some lenders don't like small-scale new-construction BRRRRs. Get your refinance terms in writing, DSCR requirement, seasoning period, appraisal method, everything.
A lot of investors are shifting to new builds because the acquisition side is so competitive. If you’ve already GC’d projects, you’re ahead of 90 percent of people thinking about doing this.
Finding good BRRR deals looks a little different these days. New construction can be a great option since there are usually fewer surprises with a brand-new build. Some investors I work with act as the GC and subcontract parts themselves, while others hire a GC to manage the whole project. It really depends on your comfort level. My top tip would be to have your plans drawn up first. This helps you get accurate costs and makes it much easier for subcontractors to follow without guesswork.
Investor · Austin, TX · Member since 2025 · 7 posts · 3 votes
10mo
@Drew Phebus If you have your own GC company fully staffed, then great! If not, make sure you have a project manager that can tend to the construction problems full time (maybe yourself, or hire someone if possible). Also, make sure you build a budget by getting a few bids per trade. Happy to share a budget template if needed!
The development, financing, zoning, permitting, land side is a whole other beast.
Can help with construction related questions though.
@Drew Phebus As competitive lender in the construction place I would recommend having bids preplanned out- also ask for their past work. In some counties you can verify if permits were closed/etc. Happy to help out.
Investor · Collierville, TN 38017 · Member since 2017 · 612 posts · 453 votes
10mo
Drew, this is a solid move, especially if you’re already comfortable acting as your own GC. When deals dry up, the people who win are the ones who learn how to create inventory instead of chasing it.
A few things from what we’re doing in Memphis:
1. Run the numbers like a BRRRR, not like a flip.
Your build cost + holding cost + financing needs to land you at 70–75 percent of ARV to make the refinance smooth. New builds feel cheaper because the finishes are modern, but overages are real, pad in a 10–15 percent contingency.
2. Use layouts that rent fast and refi well.
Our duplex builds stick to:
3/2 each side or 2/2 with open floor plans
identical layouts for material efficiency
durable mid-grade finishes (LVP, shaker cabs, matte black hardware)
3. Get your subs locked in early.
The fastest way for a GC-owner to get burned is letting subs run your schedule. Line up your framer, plumber, electrician, and roofer before you even break ground.
4. Don’t skip the rent comps just because it’s new construction.
Appraisers will still use nearby rental stock. Make sure the area actually supports the rents you modeled.
5. Confirm your exit with your lender ahead of time.
Some lenders don't like small-scale new-construction BRRRRs. Get your refinance terms in writing, DSCR requirement, seasoning period, appraisal method, everything.
A lot of investors are shifting to new builds because the acquisition side is so competitive. If you’ve already GC’d projects, you’re ahead of 90 percent of people thinking about doing this.