Building high end rental in S Seattle
Seattle real estate
It's time to start building, BUT should I start with current inflated material cost? It is my intention to build and rent out 3 units on one lot, Main house 4bed/3bath 3,320 SF. Basement is 1/1 750sf Appartment with full kitchen/Laundry Separate entry. And detached 2/2, 990sf ADU,
Total 5060SF and will cost approx. 200-220/sf plus lot and soft cost =1.3-1.4m all in I'am a custom home builder so this will be my cost not counting my time spent managing.
Rent will be minimum 3500 for house, 1500 Appartment, 2000 DADU =7000
2.5 years ago when I started with design on this project, estimated cost to build was 900k-1m so 7k/m rent made sense building. but now it will cost 400k more to build with relatively same rent I'm having second thoughts if I should build?
I know I can get more with AirBnB but I want to underwrite as rental to be safe.
What are your opinions?
Most Popular Reply
@Vadim Babets, instead of building, just get a house with ADU or a finished basement. Instead of building a DADU, put this money as a downpayment for a second house with ADU. You will get more cash flow this way