We are in the process of acquiring an old home that is currently on 4 lots (teardown). It is a smaller town that is in great need of rentals. Our plan is to have the lots re-plat into 4 separate lots and either building 4 small homes or 2 townhomes/duplexes.
We have a bit of experience with building a new home however building 4 separate homes would be a bit pricey and there are 4X as many things to go wrong! The townhome/duplex idea seems to be a better idea given the area however, we know nothing about building and valuing them.
If anyone could give us a little direction as to which would be more valuable and hopefully point us in the direction of a reputable builder or developer in the Dallas/Ft. Worth. I know I'm asking for a lot of information and I fully intend on pouring over these forums for some direction but I thought I would ask first. Thanks for the help, wish us luck!
I thought I'd bump this... Did you get anywhere since January? I have a similar type scenario and would like your question answered.
I have similar interests as well. Wondering if you guys found answers to good builders and choosing between homes and duplexes.
Wondering how to proceed. I'm an experienced investor with residential rental properties and small apartment units. Really looking to possibly buy a piece of raw land and build a home on it. I know absolutely nothing about how to look for location, value, how to assess building costs, how to choose a contractor, etc.
Would appreciate very much any pointers, tips, etc. re how to get started.
Many thx in advance.
Over the last 8 years I’ve built about 40 4-unit apartment buildings in Canada. I won’t be able to help with costing in your area, but I can offer some tips and pointers.
Your per/unit cost for construction will decrease the more units you can build in one building. For example, a duplex will cost less per unit than building 2 houses, and a four plex will cost less per unit than 2 duplexes.
You will also have less ongoing maintenance because you’ve reduced the number of roofs, foundations and siding, amongst other items, to maintain. You can also reduce ongoing operating expenses by having more units in one building. For example, you can have one water meter, and only pay one base charge.
Those are just my first few thoughts, and My conclusion is to work to maximize the density.
I hope this helps everyone.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!