My recent duplex construction
Good afternoon all
My name is Matt and I recently joined BP and I wanted to share with you my experience building my first rental property.
First a little about myself. I am 37 years old with 20 years experience in mostly masonry but also some framing experience as well. I tackled every aspect of this project from footings to roof except for HVAC, plumbing, electrical, insulation, and sheetrock. It was quite a job to say the least but is now complete and I have some great renters in place.
I know that this strategy build and rent does not work for everyone but with my background and skills it makes sense for me. I like the idea of having a property that should not need any maintenance for several years and that it meets current building and energy codes.
The numbers:
Out of Pocket Cost - Land $10,000
Surveying $500
Clearing $3000
Closing Cost $5,000 (total for construction loan and permanent financing)
Construction Cost and Furnishings - $81,000 (money I borrowed)
PITI is $715 a month, rent is $1,100 both sides combined so I am cash flowing $385 per month.
I was disappointed in my appraisal. When I questioned the appraiser he said there was no comps on duplexes in the area since one hadn't been sold in 12 years. He said they basically based the appraisal off its potential income. So I feel I took a hit on some of my sweat equity.
All in all it was a great experience. I think next project will be a SFR to rent.
Here are some pics of my Duplex. Thanks for looking