Building a duplex on a 7,000 sq. ft plot of land?

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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.

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..

You may want to check into the parking requirements.  We see a lot of smaller lots that, even though the zoning allows multiple units, the parking requirements make it unrealistic.  In other words, you may have to build multi-story to allow for parking and the shape of the lot may not allow for turning radius, etc.  Good luck -