All Forum Posts by: Kevin Dickson

@Neal Collins Thanks for the response Neal! I just don't think they have multi-families like that in the area I am looking to live. I feel like a duplex would cost about $450-500K and the rehab to get it renovated/updated would easily be another $100k. I am pre-approved for a lot of money on the construction loan so I figured it would make more sense to just build something I like.

Hey guys! I am trying to get estimates on how much it will cost for me to build either two duplexes or a fourplex in the Metro Portland area. Do any of you have any experience building small multi-families? I don't REALLY have any designs in mind because I am not sure how flat roof/vs non flat roof affects cost. So what I am looking for is someone that has done more than a few of these to talk me through some of the costs.

I already have the financing ready to go if the numbers on the project work out I am going to pull the trigger.

Selfishly bumping this thread to the top lol

I am also curious about single family home rental rates vs. duplex rental rates. If there is a 3 bedroom/2.5 bedroom single family and a 3 bedroom/2.5 bedroom duplex would they get the same rent?

@Seth Borman The county max for a duplex is $471,100 / Triplex is $569,450 / Fourplex is $707,700. So I THINK I would be okay based on the maxes and the lender said I could qualify for the $707,700 max as well.

Hey guys! I am a newer BiggerPockets poster but I came across a potentially AWESOME deal that I wanted to share with you guys to see what you all think/if anybody has any experience and can help me out.

I was looking online and I found a house that is severely distressed in my city for $175,000 on a 0.45 acre lot. AS SOON as I saw this, my eyes got big! Single family homes here go for at least $400,000. I have never purchased a home so I reached out to a lender to see if I could get an FHA 203k loan. He let me know that I most definitely could and asked what I wanted to buy. I told him I wanted to buy this property, tear it down and build a small multi-family on it (duplex/triplex/fourplex). He said that he thinks the 203k would cover it but I should call the county and see what it is zoned.

I checked and the zoning will allow for me to build up to four units so my thought is that I want to ideally build two duplexes on the lot OR build a fourplex. I am hoping that the whole project would be around $650,000 - $700,000 ($170,000 for the initial purchase, $80,000 for the site prep work, $200,000 for each duplex OR $400,000 for the fourplex build). Mortgage would be about $3,300 and I think I could get at least $1,600 for each unit ($4,800 in gross rents - I would live in one unit) leaving me with a cashflow of $1,500 a month (before I set aside money for maintenance, possible property management, vacancy).

 One thing that KIND OF worries me is that there aren't that many multifamily homes in the area so how will that affect my exit? In ten years, if I want to sell, will someone want to buy a duplex or a fourplex? Another thing I am thinking about is, will a 203k loan cover two duplex since I will TECHNICALLY only live in one of the building since they are detached?

I am trying to get in touch with some builders so I can get some sketches/designs for small multifamily buildings so I can get an estimate on the costs. Do any of you know any contacts nationally that build small multifamily homes? If so, I would REALLY appreciate it if you shot me a personal message with a link to their site so I can check them out.

What do you guys think about this? Is my logic flawed? I am new and would love, and appreciate, your feedback. Has anyone undertaken a project like this? Is it worth it?

I'll be there! I'm newer to BP and attended the last meetup. Hope to see the folks I met last time and connect with the some new faces tomorrow night.

That's awesome. I'm glad you got through your first deal! 

@Cody Jurgens I do not really have connections but I live in the Portland area and am interested in partnering with you on some deals in the area. I have a nice chunk of capital and would like to get my feet wet with my first real estate deal. PM me if you're interested.

@Chris Parrish @Randy Johnston I really appreciate you passing along the info! I will most definitely make it out to the meet and greet tomorrow night.