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Lauryn Meadows
Pro Member
  • Ironton, OH
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Developing a Small Multi

Lauryn Meadows
Pro Member
  • Ironton, OH
Posted May 17 2017, 05:53

Hey all! So a little background, I've never done any type of development project. My husband and I are currently flipping our first property, and that's the amount of real estate investing experience I have. (Other than buying and selling my personal home for a small gain, but was not intended to be an "investment" when purchased.)

My husband and I were in the process of starting to build a home (we've already sold our primary residence and are now living with my in-laws.) Well, long story short, the property with the right of way is now going to have to go through the foreclosure process vs. the owner signing a Quit Claim Deed. (My in-laws own the tax leans on the property.) So, now we are in a situation to buy and we want to be financially smart and let this be a part of our strategy towards financial freedom. 

I'm looking everywhere in my area for a four unit multiplex to purchase, but I'm not having any luck. (We thought if we could "house hack" and utilize the 3.5% down payment on a FHA loan it would be the smartest thing for us to do financially.)

As I said, we aren't having luck finding any properties for sale (I'm in a fairly rural area) let alone good deals! I have had my eye on a piece of land that is below market value that could be developed for a small multi family.

The most experience I have with new construction is speaking to multiple builders to bid on the primary residence I (was, or am in the future) to build. 

We are in a unique situation where we have some cash, and we are ready to make a move. Plus, I have my husband on board to make sacrifice in our personal living arrangements in order to get closer to financial freedom (huge score!) I've done a lot of research on value-add multis, but not new conscrtuftuon so any advice is much appreciated! 

How do these loans work? Are they similar to personal home construction? 

Do you see similar returns on new development? 

Again, any advice is much appreciated! 

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