First duplex build in South Florida (FHA construction loan). Validate construction $$
Member since 2026 · 7 posts · 0 votes
My goal is to build a 2,600–3,000 sq ft duplex (about 1,300–1,500 per unit) using an FHA construction-to-permanent loan. Current numbers I am estimating: Land: ~$350K–$450K Construction estimates: ~$250–$300 per sq ft Total projected project cost: ~$900K–$1.2M Questions: 1. Are these realistic South Florida construction costs right now? 2. What did your duplex cost per sq ft all-in (including permits and soft costs)? 3. How much contingency should I plan (10%? 15%?) 4. What mistakes did you make on your first duplex build? 5. Did your rents justify the build vs buying existing property? 6. What did your draw schedule look like with the lender? 7. Any advice on choosing contractors when you are new? My goal is long-term rental income and learning development, not flipping. Would appreciate any advice from people who have actually built duplexes recently.
Hey I currently have 7 new construction projects in Miami dade and south Broward including a few duplexes. First thing is those duplexes sq ft are way too big , you need to cut it down to save on construction. Depending on the bed and bath count they should not be going over 1000 sq ft per unit, 1k sq ft unit will rent the same as a 1,300 sq ft unit and will save you $75k per unit on the construction. Second, depending on the location and finishes I believe that cost is a little high, shuld be closer to 205-225 a sq ft with a GC. if you need anything feel free to reach out
Chris,
Why are you using FHA to build a home versus Fannie Mae? Usually its due to credit score or lower income if that is not the case I wold check out Fannie Mae 5% if you have good credit you will have a lower rate and lower PMI unless you get a sellers credit and do a PMI Buy out.
One of my offices is in Miami and the other is in Pinellas County and based on knowing the FL Market I would tell you to build in Parrish, Crystal River, Oldsmar, Largo or a few other places where the purchase to cash flow ratio is better including rents both STR and LTR.
If you ever have any questions feel free to check out my profile and drop me an email. I am always happy to help other BP members save time and money!
@Jason Wray Jason, I appreciate the insight. FHA was mainly my starting point because I’m trying to minimize upfront capital on my first development while I learn the process, but I do have good income and credit so I’m open to comparing conventional options as well. Right now my biggest focus honestly is understanding the real-world challenges that come up during a first duplex build (cost overruns, contractor issues, draw schedules, permitting delays, etc.). I’m working to understand all the common problems first-time developers run into so I can plan for them ahead of time. Things like:
Where budgets usually go wrong
What contractors don’t tell new builders. What typically causes delays
What I should have in contingency
What surprises you wish you knew before your first build. Lessons you learned from your first duplex build
My objective is to be as prepared as possible before I start, not learn the hard way during construction. If you were doing your first duplex again in Florida, especially in the Miami , Broward county area, what are the biggest mistakes you would try to avoid? I may reach out by email as well, I appreciate you offering that.
@Jason Wray Jason, I appreciate the insight. FHA was mainly my starting point because I'm trying to minimize upfront capital on my first development while I learn the process, but I do have good income and credit so I'm open to comparing conventional options as well. Right now my biggest focus honestly is understanding the real-world challenges that come up during a first duplex build (cost overruns, contractor issues, draw schedules, permitting delays, etc.). I'm working to understand all the common problems first-time developers run into so I can plan for them ahead of time. Things like:
Where budgets usually go wrong
What contractors don’t tell new builders. What typically causes delays
What I should have in contingency
What surprises you wish you knew before your first build. Lessons you learned from your first duplex build
My objective is to be as prepared as possible before I start, not learn the hard way during construction. If you were doing your first duplex again in Florida, especially in the Miami , Broward county area, what are the biggest mistakes you would try to avoid? I may reach out by email as well, I appreciate you offering that.
My goal is to build a 2,600–3,000 sq ft duplex (about 1,300–1,500 per unit) using an FHA construction-to-permanent loan. Current numbers I am estimating: Land: ~$350K–$450K Construction estimates: ~$250–$300 per sq ft Total projected project cost: ~$900K–$1.2M Questions: 1. Are these realistic South Florida construction costs right now? 2. What did your duplex cost per sq ft all-in (including permits and soft costs)? 3. How much contingency should I plan (10%? 15%?) 4. What mistakes did you make on your first duplex build? 5. Did your rents justify the build vs buying existing property? 6. What did your draw schedule look like with the lender? 7. Any advice on choosing contractors when you are new? My goal is long-term rental income and learning development, not flipping. Would appreciate any advice from people who have actually built duplexes recently.
@Adrian Lemus I appreciate you responding. I’m working to understand the construction process from people that actually do this every day. From your experience, what are the main phases when building something like a duplex and where do most of the major costs usually fall (foundation, framing, mechanical, finishes, exterior, etc.)? Even just general ranges or how you usually see budgets broken down would be helpful. I’m just trying to understand how experienced builders typically look at projects. I appreciate any insight you’re willing to share.
Hey I currently have 7 new construction projects in Miami dade and south Broward including a few duplexes. First thing is those duplexes sq ft are way too big , you need to cut it down to save on construction. Depending on the bed and bath count they should not be going over 1000 sq ft per unit, 1k sq ft unit will rent the same as a 1,300 sq ft unit and will save you $75k per unit on the construction. Second, depending on the location and finishes I believe that cost is a little high, shuld be closer to 205-225 a sq ft with a GC. if you need anything feel free to reach out
@Branden Rivero Thanks for this insight, that actually gave me a lot of clarity on costs. My plan is to live in one unit and rent the other, so I’m trying to build something efficient but still comfortable long-term. I’m early in the process and working to learn from people actually building duplexes in South Florida. If you’re open to it, what would be the best way to reach you? I’d really value any guidance you might be willing to share as I move through the process.
@Branden Rivero Just followed you. Appreciate you sharing this perspective.
Hey I currently have 7 new construction projects in Miami dade and south Broward including a few duplexes. First thing is those duplexes sq ft are way too big , you need to cut it down to save on construction. Depending on the bed and bath count they should not be going over 1000 sq ft per unit, 1k sq ft unit will rent the same as a 1,300 sq ft unit and will save you $75k per unit on the construction. Second, depending on the location and finishes I believe that cost is a little high, shuld be closer to 205-225 a sq ft with a GC. if you need anything feel free to reach out
Bro! Yes.. I don't know that market but I was going to say the same thing. No need to go that big. We're building duplexes at around 1200 sf each side and looking to make it even smaller as well. Great point!
@Chris Goodwin Jr. Have you spoken to any contractors yet? I agree with Adrian.
@Jordan Ray Not yet, but that’s my next step. When I start meeting with general contractors, what questions would you recommend asking to make sure I pick the right one? Also what are some red flags to watch for with first-time builders? I want to make sure I understand how to evaluate them properly before committing.
Chris, lots of good cost feedback in this thread already. I want to flag something that comes before the construction cost question and can save you from a very expensive mistake on your first build:
Before you lock in land at $350K-$450K, make sure you've verified the buildability of specific parcels, not just the general area. In South Florida (especially Broward County), here's what can quietly kill a duplex project:
1. Zoning confirmation. Not every lot zoned "residential" allows duplexes by right. You need to confirm the specific zoning district permits two-unit construction without a variance or special exception. A variance adds months and uncertainty to your timeline.
2. Flood zone and elevation requirements. Fort Lauderdale has significant flood zone exposure. If your lot is in a Special Flood Hazard Area, you'll likely need to build to a higher finished floor elevation, which adds foundation costs (sometimes $30K-$50K+) that don't show up in your $250-$300/sq ft estimate.
3. Lot dimensions vs. setbacks and lot coverage. A 2,600-3,000 sq ft duplex footprint needs a lot that can actually accommodate it after you subtract front, side, and rear setbacks. In some Fort Lauderdale zones, setbacks can eat 30-40% of a standard lot. Run the actual math before you put land under contract.
4. Impact fees and utility connection. South Florida impact fees for new construction can be $15K-$25K+ per unit. Make sure these are in your soft cost budget.
5. Wind mitigation and insurance. New construction in Broward needs to meet the Florida Building Code wind load requirements, which is good for insurance rates but adds to construction costs. Factor that into your per-sq-ft estimate.
I'd strongly recommend running a quick zoning, flood, and buildability check on any lot before you go under contract. It takes about 20 seconds to pull the key data points and can save you from buying a lot where your duplex plan doesn't actually fit. The $350K-$450K land number is meaningless if the specific parcel can't support what you want to build.
What specific area of Fort Lauderdale are you targeting? That'll determine which of these risks is most relevant.
@Landon Reid I’m focusing on several Broward submarkets where duplex zoning and rental demand are strong including Oakland Park, Fort Lauderdale, and Hollywood.
Chris,The skepticism about the numbers is healthy; square footage is only the starting point. For Lee County in 2026 I'd push back gently on $205-225/sq ft: with CBS block, impact openings and wind-borne debris glazing, the honest GC range is $230-260. Keep a separate contingency for what you only find once the site is opened. And for FHA construction-perm, have license docs and the warranty letter ready before the first draw. |