Hi all, new to this site but seems to be a lot of great advice on here! I'm also new to real estate investing, but I've noticed a piece of property available that's piqued my interest and trying to figure out if what I have in mind is workable.
I'm looking at an empty lot (already zoned) which I believe would fit a nice row of 5 townhomes. Being that I don't have a background in construction or real estate, however, I'm having a hard time doing even a rough, back-of-the-envelope calculation of the numbers; I obviously know the land price and feel like I've gotten a pretty good sense of how much they could sell for based on comps in the area (I would probably sell them as condos rather than keep for income). What I don't know if how much the construction would run. For a five-unit building of three-story, roughly 1500 sq. ft townhouses, can anyone guesstimate what kind of ballpark would I be looking at? This is in the Twin Cities area.
Thanks in advance for your thoughts!
About $175 per foot to construct - should include all costs from dirt to completed product. Of course this number varies and based on your connections and experience which seems limited.
Thanks Travis! Yes, both are indeed limited. Using that metric, it doesn't leave too much margin of error for the numbers I had in mind... I'm getting the feeling this is probably overly ambitious for a first project!