Buying a multi family lot

[Ivan Velazquez]

Hello everyone,

I see not many new multifamily places popping up here in Phoenix.. I've been thinking of buying a lot that is zoned MF and building a basic duplex.  This would be a long term play and the idea is that I would minimize the maintenance cost considering they would be new builds.  My thought is to buy the lot cash and use the equity from my rental property to build the duplex, refi and move on to the next one. The question that keeps lingering is why don't more people do this?  Is it because of the length of time to get this done? The capital needed?

[James Conaway]

When I was looking into this, the cost to purchase land+build costs didn't compare to purchasing an existing property. Price's have gone way up, so maybe it makes sense now? But construction costs have gone up as well recently with COVID...