To build or to buy?

[Kelvin Lee]

I have a lot in Forest Grove that I can build a 10 plex on it. Compare to buy an existing property which per unit price is about the same as building a new one myself, should I build instead of buying an existing property? 

Things that I have already considered are 

PROS

• Compare to City of Portland, City of Forest Grove is much developer friendly in term of building new apartment

• There will be less hidden physical issues compare to buying an existing property. 

• No existing tenant issue you need to deal with up front

• You create an opportunity yourself VS praying for the right deal to show up every nite

• Higher rent

CONS

• Zero income during the construction which would be about 9 months and another 3 - 6 months to fill the vacancy

• I need to pay out of pocket to cover the interest during the development

• Anything could happen during the construction phase...find an oil well 6 ft under during excavation

• I have enough knowledge to operate an apartment business but never build an apartment before 

Let me know if I missed anything.