Build to Rent Duplex

Dallas, Texas
Land & New Construction
2moFollow

Build to Rent Duplex

Shavin Patel
Investor · Oklahoma/Texas · Member since 2020 · 14 posts · 7 votes

Starting my build to rent journey in the DFW area.

I am currently building two duplexes side by side. One for an investor and one that i plan to hold myself as a long term rental. 

I am working through the full process of land acquisition, construction management, and building a repeatable system to continue growing my rental portfolio. 

Im looking to be more active on BiggerPockets, connect with others investor/builders, and learn from others. 

I am documenting my journey on Instagram and TikTok @sparbuilds

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2mo
Cool. One thing I’ll mention about when you document the story is you realize how many times you should go back to look at something as a refresher for educational purposes on your next deal so it’s not only good Marketing but good for reeducation.
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  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    2mo
    Quote from @Shavin Patel:

    Starting my build to rent journey in the DFW area.

    I am currently building two duplexes side by side. One for an investor and one that i plan to hold myself as a long term rental. 

    I am working through the full process of land acquisition, construction management, and building a repeatable system to continue growing my rental portfolio. 

    Im looking to be more active on BiggerPockets, connect with others investor/builders, and learn from others. 

    I am documenting my journey on Instagram and TikTok @sparbuilds

    Hey @Shavin Patel, welcome to the BP Forum! How many BRs will be in these units and what are your general numbers for the construction budget, ACV, and expected rents? 

    [email protected]
    1Reply
    • Shavin Patel
      OP
      Investor · Oklahoma/Texas · Member since 2020 · 14 posts · 7 votes
      2mo
      Quote from @Jaycee Greene:
      Quote from @Shavin Patel:

      Starting my build to rent journey in the DFW area.

      I am currently building two duplexes side by side. One for an investor and one that i plan to hold myself as a long term rental. 

      I am working through the full process of land acquisition, construction management, and building a repeatable system to continue growing my rental portfolio. 

      Im looking to be more active on BiggerPockets, connect with others investor/builders, and learn from others. 

      I am documenting my journey on Instagram and TikTok @sparbuilds

      Hey @Shavin Patel, welcome to the BP Forum! How many BRs will be in these units and what are your general numbers for the construction budget, ACV, and expected rents? 


       Hello, Thank you!  Each unit will be 3 bed 2 bath 1350 sqft. Ive budgeted for $300k construction cost, ACV is 590k-600k, the rents in the are go for $2100-$2300 per side. 

      1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2mo
    Cool. One thing I’ll mention about when you document the story is you realize how many times you should go back to look at something as a refresher for educational purposes on your next deal so it’s not only good Marketing but good for reeducation.
    7e investments53 Reviews
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    2Reply
  • Joseph CacciapagliaBusiness Member
    Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes
    2mo

    Thanks for sharing. I'm excited to follow this one. I've only done one ground up build myself, but hope to do more eventually. How are you financing these two?

    [email protected]979-218-2286
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    1Reply
  • Shavin Patel
    OP
    Investor · Oklahoma/Texas · Member since 2020 · 14 posts · 7 votes
    2mo

    Absolutely! Both are financed through private lenders and hard money. 

    1Reply
  • Simcha B Shedrowitzky
    Lender · Nationwide · Member since 2024 · 76 posts · 23 votes
    2mo
    Quote from @Shavin Patel:

    Starting my build to rent journey in the DFW area.

    I am currently building two duplexes side by side. One for an investor and one that i plan to hold myself as a long term rental. 

    I am working through the full process of land acquisition, construction management, and building a repeatable system to continue growing my rental portfolio. 

    Im looking to be more active on BiggerPockets, connect with others investor/builders, and learn from others. 

    I am documenting my journey on Instagram and TikTok @sparbuilds


     Hi @Shavin Patel, welcome to the community! 

    A build-to-rent duplex strategy in DFW is a fantastic way to scale. 

    Setting up a repeatable system early on for land acquisition and construction management is exactly how you find long-term success with ground-up builds.

    Since you are using private lenders and hard money to fund these initial projects, one critical piece to plan for in your repeatable system is your exit strategy. 

    Private capital is great for getting the dirt moving and completing vertical construction, but with a long-term hold plan, your permanent financing runway needs to be locked down early.

    Are you planning to roll the hard money into a long-term 30-year DSCR loan once the units are completed, leased, and seasoned? 

    Mapping out those permanent refinance terms right now will ensure you don't eat into your projected numbers down the line.

    Looking forward to following your build journey!

    2Reply
    • Jakir Malek
      Investor · Dallas, TX · Member since 2019 · 4 posts · 1 vote
      1mo
      Quote from @Simcha B Shedrowitzky:
      Quote from @Shavin Patel:

      Starting my build to rent journey in the DFW area.

      I am currently building two duplexes side by side. One for an investor and one that i plan to hold myself as a long term rental. 

      I am working through the full process of land acquisition, construction management, and building a repeatable system to continue growing my rental portfolio. 

      Im looking to be more active on BiggerPockets, connect with others investor/builders, and learn from others. 

      I am documenting my journey on Instagram and TikTok @sparbuilds


       Hi @Shavin Patel, welcome to the community! 

      A build-to-rent duplex strategy in DFW is a fantastic way to scale. 

      Setting up a repeatable system early on for land acquisition and construction management is exactly how you find long-term success with ground-up builds.

      Since you are using private lenders and hard money to fund these initial projects, one critical piece to plan for in your repeatable system is your exit strategy. 

      Private capital is great for getting the dirt moving and completing vertical construction, but with a long-term hold plan, your permanent financing runway needs to be locked down early.

      Are you planning to roll the hard money into a long-term 30-year DSCR loan once the units are completed, leased, and seasoned? 

      Mapping out those permanent refinance terms right now will ensure you don't eat into your projected numbers down the line.

      Looking forward to following your build journey!


       Great point and advice, that's exactly what I am trying to figure out post construction.

      0Reply
    • Shavin Patel
      OP
      Investor · Oklahoma/Texas · Member since 2020 · 14 posts · 7 votes
      2w

      Hello,

      Yes i will be doing a DSCR cash out. I am currently debating on doing a 40 year DSCR (10 year IO, 30 Term) or sticking with a 30 year loan. I have been shopping around and I am able to refi out soon as the project is complete, no seasoning period.

      0Reply
    • Trey Belmore
      Lender · Dallas, TX · Member since 2023 · 18 posts · 7 votes
      3d

      Shavin-

      I am a local investor and lender in Dallas. What sort of Pre-Payment Penalty (PPP) if any are you looking on these type of loans? Do you plan to close these in an LLC? We can certainly help explore all of these options and details. We have competitive DSCR options and we also use local appraisers in the area. Happy to connect!

      1Reply
    • Jaycee GreenePro Member
      Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
      2w
      Quote from @Shavin Patel:

      Hello,

      Yes i will be doing a DSCR cash out. I am currently debating on doing a 40 year DSCR (10 year IO, 30 Term) or sticking with a 30 year loan. I have been shopping around and I am able to refi out soon as the project is complete, no seasoning period.

       @Shavin Patel What are you targeting in terms of a return (e.g., IRR, ROI, EMx, etc.)?

      [email protected]
      0Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    2mo
    Quote from @Shavin Patel:

    Starting my build to rent journey in the DFW area.

    I am currently building two duplexes side by side. One for an investor and one that i plan to hold myself as a long term rental. 

    I am working through the full process of land acquisition, construction management, and building a repeatable system to continue growing my rental portfolio. 

    Im looking to be more active on BiggerPockets, connect with others investor/builders, and learn from others. 

    I am documenting my journey on Instagram and TikTok @sparbuilds

    @Shavin Patel
    Very cool project. Building repeatable systems is what really helps a build-to-rent business scale over time. It'll be interesting to see how your construction costs, lease-up timeline, and long-term rental performance compare as you complete more projects. Best of luck with the build!

    786-656-0387
    DreamPoint Capital
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    1Reply
  • RUI LIANG
    Contractor · Dallas, TX · Member since 2026 · 13 posts · 6 votes
    2mo
    That $300k works out to about $111/sf. I'd be closer to $130/sf for a turnkey modular build, so honestly you're not far off. Does your $300k include sitework and utilities?
    1Reply
    • Shavin Patel
      OP
      Investor · Oklahoma/Texas · Member since 2020 · 14 posts · 7 votes
      2w

      Utilities were already on the lot. site work is included in the price per sqft,

      0Reply
  • Iliya Muzychuk
    Fayetteville Arkansas · Member since 2026 · 38 posts · 12 votes
    1w

    How are you getting $130/SF? I can't see anything south of 175 at NWA where I am at.

    0Reply
  • Kevin Ebbecke
    Lender · Jacksonville, FL · Member since 2024 · 4 posts · 1 vote
    6d

    Shavin, nice project. I work on the financing side of a lot of BTR deals, so I’m curious what you’re trying to accomplish with the takeout. Are you mainly looking to pay off the hard money and maximize monthly cash flow, or are you trying to pull as much of your original capital back out as possible to roll into the next build?

    That would probably drive my decision between the 30-year and 40-year/IO more than anything else.

    0Reply
  • Diego AlvaradoBusiness Member
    Real Estate Agent · Flower Mound, TX · Member since 2016 · 296 posts · 139 votes
    3d

    @Shavin Patel this is great. I am looking forward to see the progress.

    Good luck and reach out if anything that we can help.

    BP is a great community open to help.

    Make sure to create your circle of trust. It is very important in this industry.

    [email protected]214-833-8911
    Alvarado Realty Group520 Reviews
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    0Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    3d

    Sounds like a neat project. Consider building relationships with local community banks. They often offer construction to permanent financing that cover both construction and permanent financing with a transition mechanism you can opt into which can reduce financing costs. You may also be able to negotiate an additional loan advance once the property is stabilized. Alternative lenders are sometimes necessary, especially on earlier projects before you’ve established a track record, but it’s worth exploring both options.

    I think building larger units is smart. So much of the inventory developed in recent years has smaller floor plans, while many families need rental housing with room to grow. Did you consider stacked duplexes, or would zoning prevent that? I’ve been using them for more affluent downsizers and younger families who value the flexibility of renting. Putting two units under one roof and on one foundation reduces cost.

    [email protected]
    1Reply
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