Financing a 9-unit Apartment Building in Minneapolis

[Junaid Khan]

Hello all, this is my first post here at BiggerPockets, so I appreciate any advice and/or criticism you have to offer.

My wife and I have bought and sold 2 properties for profit in the last couple years and we are currently working on our third, which should be the most lucrative of all.  We recently inherited a vacant lot in Minneapolis that is zoned for a 9-unit apartment building with units up to 2500 sq.ft. each.  We are looking for advice on the best way to finance the construction of a new building, as well as what we should expect the overall cost of construction to be.  Currently we think we could build 9 -3BR/2BA units for roughly $1mil.  

Background:

-Both work with total annual income of roughly $90k

-Both have near 800 credit scores, zero debt other than our mortgage of $1600 (tied to sale mentioned below)

-Once we sell our current project we should have $130k liquid cash available to put towards down payment. 

-Land is owned free and clear

[Todd Dexheimer]

Drake bank, sunrise banks, Firefly Credit union, bridgewater bank, first american bank all would be good to call. Anchor bank, US Bank and many others may also consider it, but likely to build you will need 25% down of the total build cost. I would expect it to cost about $100-$175/sqft depending on the finishes. If you are building 1200 sqft units you should count on 12,000-15,000 sqft total. Your minimum cost likely would be $1.2M, but I would budget $1.5M+.