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Garrett Wright
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Unique Approach to Multi-Family Construction: Seeking Guidance

Garrett Wright
Posted Jan 16 2024, 15:42

Hey BiggerPockets community!

I'm embarking on my first multi-family construction project in Washington County, Utah, and would greatly appreciate your expertise and insights. Here's a summary of key aspects:

1. Project Overview:

- Planning a multi-family construction project with a unique focus on Adobe construction for cost efficiency and sustainability.

2. Location-Specific Considerations:

- Based in Washington County, Utah, and seeking advice on local real estate trends, climate considerations, and networking opportunities.

3. Family Connections and Expertise:

- Fortunate to have relatives in the plumbing and electricity business, as well as a construction crew, contributing to cost-effective and efficient construction.

4. Co-Borrowing and Credit Situation:

- My girlfriend is co-borrowing with a credit score of 740, while I'm working on building credit over the past six months with responsible credit card use.

5. Financial Constraints and Small Down Payment:

- Exploring options for a small down payment due to limited savings.

6. Adobe Construction X Factor:

- Adobe construction expertise and cost-effective methods as the X factor in this project.

7. Post-Construction Goals:

- Planning to refinance after completion and use equity to fund future rental properties.

I'm seeking advice on the sequential steps in obtaining a construction loan, acquiring land, developing plans, and any insights on estimating appraisal values for finished Adobe homes.

Your experiences and guidance are invaluable as I navigate this exciting venture.

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Carl Davis
  • Real Estate Agent
  • Utah
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Carl Davis
  • Real Estate Agent
  • Utah
Replied Jan 16 2024, 19:07

In my opinion I wouldn't recommended attempting to site build a duplex or other multi family, at least for a first deal.

With a one time close construction loan you still need to float the interest only payments monthly until the building is completed. 

Two time close Construction loan would imply you were purchasing or seller financing the land first (correct me if I'm wrong loan officers).

To me this type of deal could have a lot more unexpected expenses and fees that you may have to front, so I wouldn't recommend with limited capital.

Just my limited opinion. Purchasing something existing and turn-key is always what I recommend for my house hacking clients.

  • Real Estate Agent Utah (# 12669906-SA00)