BUY AND REBUILD IN FLORIDA

[Gary Cungu]

Hi team,

I am currently doing the due diligence on a property near a major Florida university on a buy and rebuild project.  The builder has already gone by to inspect the property to determine what could be possibly built on the lot.  We are thinking of building 6 purpose built town homes with 3 bed / 3 bath each and a driveway.  The return is $9000 per month if all are rented out to students or they can be sold at $230,000 according to comps in the area.  We can also build two additional rooms in the basement with their own walkout for an additional $1000 per month per house which brings the total to $15,000 a month in rental income. I am wondering if building town homes is the best route to take, or should I build a mid rise to accommodate more students? 

[Greg Dickerson]

@Gary Cungu it all depends on the development cost. If you run the numbers each way that will shown you the best route to take.