Is there anyone that has actively done the development side of Real Estate - ie: Build to Rent?? My partner and I would shift to that to get into building affordable housing, as we see there is quite a need in the area, but would like to talk to some people experienced in the area so we know things to look for and we don't get taken advantage of.
@Tara Kinney - This is something I am also interested in. But we would likely rehab here in Chicago instead of building new unless we were able to find some nice builder incentives.
There is a really good biggerpockets episode with even holiday that went into some good details about attainable housing.
Here is the link to the episode:
Hello @Tara Kinney thank you for your question.
The first step is to decide how you are going to finance the building. From your question, it seems like you are thinking of funding the construction yourself. If this is the case, I'd recommend speaking with a local lender and discuss your construction loan options. They will be able to explain the parameters of what you will need to provide. Construction loans for investment properties have become increasingly difficult to obtain but not impossible. As financing might be your biggest challenge, I would start by trying to solve this first. Studying markets, learning land prices, and speaking with builders is pointless if you can't fund it anyway. A construction loan will be much easier as a personal residence or 2nd home but I'm not sure if this is an option.
2nd option is to purchase a property from a spec builder. In this case, the property is likely already through permitting and is being financed by the spec builder. In this case, you are only responsible for the end-loan (same as a normally resale purchase) once the property is completed. If you already own a lot, some builders will purchase the lot from you and use the lot's value as a down payment on the new construction as they finance the rest. It's much harder to find spec builds with 5+ units as most are being built for REITS and other private instructions.
All of my inventory is in Florida at the moment but you might have success reaching out to different providers under the Network tab to find local support. Please advise if I can provide further assistance. - Enjoy!