All Forum Posts by: Travis Heppe

Numbers are very rough at this point, but I've been told by various people to expect between $125 to $250 per sf.  I'll get more exact bids after we get through planning.  

@Renee Camarena

@Lauren Garritano the Google drive link I gave earlier contains a PDF file, "schematic drawings". The floor plans are in there. It is a mix of 4 and 3 bedroom layouts.

@Lauren Garritano The floor plans were 100% custom tailored to the lot.  I think it needed to be that way because of the spacing.

Tentative plans are here: 

https://drive.google.com/drive...

A few conceptual renders are here:

https://photos.app.goo.gl/BBJR...

We are also going townhouse-style.  To enable the option of individual sale (though we don't plan to do so), we need to do a short plat.  Zoning requirements will vary a lot from one city to the next.  A licensed architect will know the rules.

I was looking for a fourplex somewhere in the phoenix metro, and got fed up with the crappy prices of MLS deals. I decided to buy dirt and build my own. I've acquired the multifamily-zoned land, and am working through the process of getting approval to break ground. If it works out, it'll be 3 large fourplexes on 1.5 acres in Apache Junction, AZ, with a total of about 20k sf.

I'd be happy to connect and compare notes with anyone else who has done something similar.

Cap rates in Phoenix are uncomfortably low in my opinion, especially on 4-plexes.  I was competing on a few listings, but kept getting outbid.  I analyzed about 100 and made offers on 3. My bids were so low I didn't even get responses. I just went into contract on a multifamily lot in Apache Junction and will attempt build-to-rent.

Find problems that everyone else is avoiding, and solve them.

I just entered escrow on a a 1.5 acre plot of multifamily-zoned land in Apache Junction (just east of Phoenix) that I think should support 3 4-plexes.  I have a builder, but I need to find an architect that can help me guide this through city planning.  I'm looking for initial concept art first, and then full plans if that goes well.

oh, the good old days...

@Ray Johnson thanks for the detailed response.  We'll be careful during the feasibility study.  You're right that there are a lot of hidden costs, and we'll need to keep adequate reserves.
I'm still hoping I can get someone to post some actual numbers here on a completed project, though.  Do you know anyone who has done a small-scale new build multifamily?

It seems like all the 4-plexes on the market were built >20 years ago.  Is there a good reason for that? Is it still possible to build one today?

Does anyone have any numbers that they can share on what a "typical" new build 4-plex would cost, and how long it would take? I know that there are major regional variations in costs (especially land), and building materials (and labor) are much more expensive than they've historically been, but I'm starting to think that a new build might come out more favorable than an existing structure even so, given that the prices on existing places is so high.

I'd like to build a standard class-B property with 4 large-ish units (1200sf) within commuting distance to downtown Phoenix.  

If that's even possible to do :-/