Contractor · Fremont, CA · Member since 2018 · 50 posts · 17 votes
Hi, I'm new to the forum and purchased a residential lot in Modesto which previously had a house on it so which was removed so I'm credited on majority of the fees to build. Since the lot is on a corner, the city will allow a duplex as well. I am a contractor and my initial plan was to build a 1500 sq.ft. spec home but now have an option for a duplex as well. The area consists of a mixture of both. Which should I build??
Tucson, AZ · Member since 2017 · 96 posts · 58 votes
8y
I'd first start looking at the price difference between having an SFR vs a duplex. From there, you can find out the 'per unit' cost to build (just take the duplex cost and divide by 2). If you can justify building a duplex for a little more money, then it would definitely be worth it cash flow wise.
My question would be, what are your goals? If its cash flow, i'd go with the duplex (assuming you can cash flow, and that the per unit $ is cheaper than the SFR). But if you're just trying to sell, to make a profit, the SFR might do better. Just some thoughts.
Contractor · Fremont, CA · Member since 2018 · 50 posts · 17 votes
8y
So I did some research in the area on comps etc and am fairly familiar with the area since I spent majority of my life there. Duplex and SFR go for about the same prices, obviously depends on sizes conditions etc. My goal is build and sell and move to the next. I talked to an agent in the area and he said that there is a demand for SFR in the area and the listing price of around $275k is realisitic for a 1500 sq.ft. home. If i went with a duplex I would pay roughly 6k in fees vs. 3k with a single family.
Contractor · Fremont, CA · Member since 2018 · 50 posts · 17 votes
8y
@Ratesh D. The plans and permitting should take about 6-8 weeks. Construction should be about 5-6 months for a standard basic buildout. As a contractor, I can build this at about 120k.
Real Estate Investor · Tyler, TX · Member since 2017 · 8 posts · 0 votes
8y
The more units you can achieve under one roof the better off your are. In my experience in both SFR and Duplexes construction, there is significant time and cost savings when building a duplex. Plus you have the benefit of having 2 rentals in the same location.