Cost to build a Duplex

Unknown · Member since 2016 · 16 posts · 11 votes

I'm looking to start building "missing middle" housing in the Belmont neighborhood of Charlotte, NC. It's one of the few pockets of the inner neighborhoods that are affordable.... though, that's quickly changing. The lots are now going around 100,000K a lot.

A shotgun styled duplex might do the job, a little less than 900 per unit. I can get the architectural drawings for around 1500$.

The one issue is I'm having trouble getting an idea of what the costs for building a duplex are. I'm looking at around $110 per sf, though I'm hoping it could be a bit cheaper.

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Jonathan Taylor SmithBusiness Member

Rental Property Investor · Durham / Raleigh (Triangle), NC · Member since 2015 · 840 posts · 801 votes

10y

I've been curious about the same in Raleigh / Durham, NC; however I've gotten figures from $90 to $125 per SF. Since the range was so wide and I'm not going to be doing it this year, I did not put in the effort to get a more precise figure.

But my point of concern with buying a lot and building my own duplex is how to make it cash flow on par with the units I purchase and rehab. I'd like rent of 1.5% of my all-in cost, so if each unit will rent for $900 * 2 = $1,800, then my all-in cost cannot exceed $120,000. And I cannot see getting the lot in a desirable location and new building for that price; yet I can could buy existing and rehab for that and less. Am I missing something?

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Kevin Breed
Licensed Contractor · Carolina Beach, NC · Member since 2016 · 83 posts · 22 votes
6y
@Chad Smith that is just strictly building costs.
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John Mason Wallace
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Unknown · Member since 2016 · 16 posts · 11 votes
6y
Mason from four years ago was naiive. He didn't realize that the zoning code was 50+ years out of date and the US was on the way to another real estate crisis. It's probably not as big as 2008 but good lord, we didn't need another one.

I've since partnered up with much more experienced developers with the lot I acquired in the area. To make the project 'work', you gotta scale up. Why waste your time with the zoning board and city council if you just want to build say a triplex or four unit project?

You guys need to understand how much of a disaster the zoning code is. It's mandating the construction of mcmansions in my neighborhood. It's the only thing allowed by right on most of the land. So igits can build a 700,000$ single family home and walk away. Anything else, that's five+ months of negotiating with the neighborhood and planning department.
I can't see an outcome other than catastrophe for housing affordability.
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Michael Patti
Member since 2020 · 9 posts · 3 votes
6y
Some modular construction is very high quality these days. Definitely considering it for some of my future projects.
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Robert Stark
Investor · Holderness, NH · Member since 2016 · 19 posts · 30 votes
6y
I’ve also discovered it’s tough to make the numbers work for building a duplex or triplex from the ground up. Been looking into modular lately. A friend just purchased a single family ranch modular for $140sf(not including concrete or site work) Does anyone know if the cost per sf comes down as the project gets bigger? Would a triplex cost less per sf than a single family?
Thank you
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Jon H.
Miami · Member since 2020 · 46 posts · 17 votes
6y
Originally posted by @Robert Stark:
I’ve also discovered it’s tough to make the numbers work for building a duplex or triplex from the ground up. Been looking into modular lately. A friend just purchased a single family ranch modular for $140sf(not including concrete or site work) Does anyone know if the cost per sf comes down as the project gets bigger? Would a triplex cost less per sf than a single family?
Thank you

That number seems a bit high. Did they go with high end finishes throughout the home? What city are they located in? I believe modulars can be closer to $75-$90 range.

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Robert Stark
Investor · Holderness, NH · Member since 2016 · 19 posts · 30 votes
6y
@Jon H.. The house is located in Central N.H. I wouldn’t call the finishes high end, but some upgrades were made. Our labor costs are high around here.
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Matthew Anderson
New to Real Estate · Charlotte, NC · Member since 2020 · 3 posts · 0 votes
6y
Has anyone had success with using a modular home as a SFR investment? On the zoning issue, can you take a larger lot and sub-divide it and put a single family on each one?
Assume the cost of a lot in Charlotte makes it unlikely that this would be profitable, but it appears the lost cost and decent quality of modular homes could create some opportunity in the right environment.
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Garret Rhodes
Member since 2020 · 1 post · 0 votes
5y
Originally posted by @Clifford Kearns:
I am a general class A Contractor in Virginia. The best and cheapest way to do a duplex is buy a modular unit you should be able to put that together for about $75 to $80 per square foot. The time line is the best because you can get the construction done and ready to rent in 45 to 65 days!

Hi Clifford, I just came across this post and am wondering what you think today's (late 2020) cost per square foot in central Virginia would be for a modular unit duplex? Thanks!

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Christian Sobiech
Member since 2017 · 9 posts · 3 votes
5y
Can anyone recommend a modular company in the New York area? I'm currently shopping around, but finding it difficult to have good price comparisons.
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Sam Mathew
Real Estate Investor · Pembroke Pines, FL · Member since 2017 · 80 posts · 34 votes
5y
Hi John, not sure if you're still around on here. Just wondering if you made this happen or still pursuing it. Let me know..thanks. Would love to hear your story with it. Sam
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