Building low income housing using Shipping Containers ?
I am looking to build a 5-15 unit multifamily complex using shipping containers which are fully built from China.
After having read dozens of articles about building multifamily using shipping containers I am convinced this can work. Throughout the world Japan , Germany, Canada , South Africa,China and several other countries use shipping containers for constructuon projects. This method is used because it offers reduced costs in building, reduces the time of construction 30-40% , is stackable, fireproof, and safe . This building method is common throughout the world which sparked my interest .. Japan is the world leader in prefab contruction where 15% of all new construction projects are made using prefab construction methods.
The project I am seeking to develop would include buying two 40 ft extra high shipping containers From China and have them shipped to Tampa Florida. .
The process would include: having a Chinese factory build the shipping containers in the Guangdong Provice (largest manufacturing area/ construction factories in China) ,shipping them to Tampa,setting them on a concrete slab, cutting out the center walls, welding/ connecting the container, and finishing the center part with tiles.
. Prior to doing this I would have to connect the sewer,water electric , have the blue prints , permits and other other aspects of the construction in place .
The largest monetary savings would be buying this containers prefabbed from China and this would significantly reduce all construction costs. The average build costs in Tampa are 110 sq ft however this can be done for under $55 sq ft
After analyzing the construction costs in building a 640 sq ft apartment using two 40 ft containers my calculations totaled $24,000/unit (this price includes the shipping costs from port to construction site).
This 640 sq ft unit would be built to Tampa housing codes which would not impact the approval of the unit. When calculating the cost per buildable square foot the costs are :
$37.50 /sq. Ft however this does not include the roof.
After looking over all costs in this development I came up with the number of $45,000 per unit which includes land, permits , parking lot, roof,GC costs , Architectural costs etc.
This unit would be a small 2 bedroom 1 bath and it would be rented to a section 8 tenant for $945 where the tenant would pay for water & electric.
When calculating the return on investment I came up with a an ROI of 15%
$45,000 total build cost /unit
Gross yearly rent ($945 x 12 = $11,340)
-40 % expense
Income $6,804
6,804/ 45,000. = 15.1% ROI
These are not accurate calculations but I believe they are close based upon my research.