Building a duplex on a 7,000 sq. ft plot of land?
I have found a plot of land for $7,000 in an area that is not the best, but I know it very well. It is 7,000 sq. ft. and I have an idea to put a 2/1 duplex (2bd 1ba) in each unit. The area will allow rents between $850 and $900 which will give me about a 10-12% cap rate and nice cash flow monthly. I have gotten a ballpark range quote from a contractor that whom I know does very good work, and I’ve even done work with him for 100-125k. Has anyone tried this before? And is there anything that I need to beware? The plot is in town and all utilities are existing in the servitude. All replies are welcome.
Most Popular Reply
Numbers look good.. If your all in cost is $130K the value of the duplex needs to be above $150k.
I wouldn't spend $130k to build something that is worth say $140k.. cause you might be better off gutting an existing duplex that will take less time..