Building duplex in Orlando

[Andy Singh]

has anyone build duplex in the Orlando area? I’m looking for my next rental but I would like to know if building a duplex would be smarter. 

[Tyler Gibson]

Quote from @Andy Singh:

@Vijay Friedman I'm more comfortable with the brrr method but I wanted to do a new build. I'm looking close to Disney, Clermont Kissimmee. Im new to Orlando so I'm not fully aware of the best areas as yet.

 Hey Andy, I've actually looked into building multi-family here in Central Florida. I own a vacant lot outright in Daytona Beach, but even then, looking at the construction costs versus the rental rates specifically in that area, it doesn't make sense to build the dirt super cheap in order for it to make sense to build brand new multi-family. Construction costs are still pretty elevated, and unless you have the knowledge to be able to manage the project yourself and hire the subcontractors on your own and work through the permitting process on your own, I don't think the math will work out to build new here in the Orlando area. Even in the sub-markets of Lake and Polk County, I believe that the purchase price or construction cost to rent ratio will not be favorable enough to make it worthwhile. There's plenty of inventory on the market in these sub-markets where you can find cash flow, so I don't think it makes sense to build new, at least not at today's economics.