My wife and I recently just acquired a vacant lot in Bonita Springs, FL. Our intention is to develop this lot into a duplex and house hack it. And yes I have done my due diligence on the lot - it is zoned for SFH or MFH, it's not considered protected wetlands either. Both verified by the county zoning dept.
We are in the beginning stages of starting this project. Here is my question - do you have a recommendation on developers in this area that you have worked with or know of that build duplexes? We will be living in one unit so we aren't looking for the cheapest build but rather looking for a quality build at mid-price. Any recommendations or input you can provide will be greatly appreciated. Thank you!
Thank you for your post. I think that you and your wife are definitely going about this the right way. I find that duplexes consistently provide the highest CAP rates. By living in a unit you are also cut the turnover rate in half. New construction means you greatly reduce your repair cost for the first ten years and can command the highest rental rates. And lastly, if you self-manage, you can learn a lot and obviously not pay a management fee.
Neal, Del Webb, Taylor Morrison are a few of the major duplex builders in the area. If your Real Estate agent works with investors, they would already have the full list of builders, their models, ballpark pricing and a list of their common concessions. I would recommend meeting with multiple builders and running the CAP rates on each of your favorite models. I would also caution you about simply going for the cheapest option. Being cheap can cost you. As an example, going carpet throughout is cheaper than tile but you will be replacing the carpet every 3 years as they don't have a long life span and your tenants will never properly maintain it. They key is to learn how to avoid overspending while still commanding the highest rent rates.
I hope this helps.
Thanks for your input - I'll check out the developers you listed and see where it takes me. Your input is much appreciated. FYI my original post states that we are not looking for the cheapest build but rather a quality build at mid price. Thanks again for you recommendations and advice.