First duplex build in South Florida (FHA construction loan). Validate construction $$
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.
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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