My GC says a duplex cost more than two SFH's?

Question

Hi everyone! I'm finally about to get started and decided to go the "build to rent" route. That said, the GC I am looking to use has told me it would cost me more to build a duplex vs two sfh's (same sqft) r/t firewalls etc when it comes to additional steps for adjoined units. I was thinking it may be closer to a "wash" or, maybe only slightly more only bc w/ a duplex at least we aren't paying for two exterior wall materials for two sfh? I'm asking here for anyone who has knowledge bc my GC has really only built SFH, never any MFH. So I'm wondering if he's just not too familiar. Other than him not having built MFH before, I like everything else about the GC. Any first hand experiences that can be shared would be greatly appreciated. I'm not grossly opposed to SFH if it is much cheaper, but do to the spacing between dwellings per city code I could fit more doors on this plot if building duplex. Thanks in advance for any info you all can provide!

Robert Ellis · Answer

definitely not. especially if you stack instead of side by side. depends on the duplex but I'd be happy to take a look if you want. our pricing reduces by 15% from a single family to a triplex in columbus ohio and miami fl for new construction

Alvin Taveras · Answer

Hello George,

This depends on a lot of factors. Primarily land costs. We have a lot of new builds in Florida and depending on the market, 2x SFR's can be cheaper in others they are not. Some markets need a higher-end build out to be profitable others going basic on finishes is most effective.

You have to analyze the market you are in and see what the best path to profitability is. It might be best to run numbers on existing and see if by goin with a new build can perform better. From my experience too many investors are going the ground up construction and they don't often calculate all of the costs. We run the numbers of both spec build and ground up and in most cases spec builds make more sense. Let me know if you  have any additional questions.

Dave Wells · Answer

I agree with Chris. I’m Building a duplex in Arizona currently. For me It’s one single stem and pad so there was some savings in labor. Single trench for electrical/sewer so again labor savings. My permit cost the same as SFR. Yes some added costs between units but not that much.

Evan Polaski · Answer

@George Lods, clearly this is all anecdotal, since we are talking all hypotheticals, or at least not deal specific comparisons.

As others noted, there are a a fair amount of efficiencies you can get by building a duplex versus multiple standalone properties.

I cannot see how build two, say, 1200 sq ft houses with two roofs, two foundations, presumable about 25-30% more windows and siding is going to be cheaper a duplex that might have a little extra fireblocking and soundproofing.

Now, maybe your GC is thinking that detached homes tend to get higher rent than comparably sized and finished duplexes.  So in his mind you need to put high end finishes in a duplex versus basic finishes in a detached single family, but then this becomes an apples to oranges comparison.

The only real way to know is to have plans drawn up and get actual bids based on those plans.  Anything else less than bids on actual plans is all guesswork, anyways.

Chris Seveney · Answer

If you have two homes, you have two sewer and water laterals and two electrical pulls to two different locations. With a duplex this is all one and then gets segregated in the home

Chris Seveney · Answer

I would argue that a duplex is more affordable - are they doing the site work as well? A duplex should have a lower cost foundation and typically has less windows and exterior. Also utilities and sitework should be less as you do not need to bring in two electrical services, water services and run two sewer services and connection fees.

George Lods · Answer

Thanks Robert for sharing that data. 15% is a nice chunk to save!

George Lods · Answer

Thanks Evan. Yes I am just going to go forward with submitting to the GC the mfh plans and get a quote and compare that to his already quoted cost to build sfh. I honestly cant see it being more or much more if anything. My main purpose is limited space on this particular parcel. Its a .71 acre lot and based on city code and spacing between buildings I can obviously fit more doors if I went w/ 2 duplex or 2 tri's vs sfh's. Thats my main "why".

George Lods · Answer

Thanks Alvin. Yea I have spent many yrs in analysis paralysis looking for that right brrr 70 cents on the dollar etc and just decided to go brand new on my own raw dirt and build a floor plan that I like. At least my cap ex will be minimal for some yrs to come.

George Lods · Answer

Thanks my understanding of this situation is everything you are mentioning as your experience.

My GC says a duplex cost more than two SFH's?

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