Development costs for small multifamily

[Caleb Webster]

I'm in the process of underwriting a potential development opportunity in SE before I make an offer. The plan would be to hold the property as a single family rental for a year or two while beganing the development process. For those of you with experience developing small apartments in the PDX metro, what are some of the 'back of the napkin' development calculations you make when doing cursory underwriting? 

[Jay Hinrichs]

Originally posted by @Caleb Webster:

Wow, as if cost per square foot and land weren't expensive enough. No wonder there's an affordability crisis in Portland...

 Just paid 127k for 3 attached SFRs I have going vertical  that's just city fees SDC and building permits  and it was another 60k to get to the point to have the privilege to pay the city fees.. and no kidding..  affordable housing advocates have no clue as to what the city has done to make affordable housing an oxymoron.   only way that happens is if landowners give their dirt away.. and of course we know that that is not going to happen.  I am not sure how you can build new construction small projects  and make them pencil. 

and then with 20 unit and more needing affordable housing component NOT ONE permit has been applied for for a 20 an up since the law was in acted.. so the law is there but the free market is not going to participate so there will be no affordable housing unless the City state keep up with low cost bond issues and tax credits for developers.