Building a rental – would you do this if you were in my shoes?

I’ve been in the market for a financed investment property and have been getting outbid on every remotely decent deal by cash offers (as expected honestly), so I’ve been researching building instead and it’s looking like a really good option for me right now.

Do you have experience building a rental property and have any advice?

Otherwise, considering the following details, would you do this?

I own a residential lot free and clear – I paid nothing for it as it was included as a “gift” along with the purchase of my primary residence some time ago when we were in a buyer’s market. I have verified that my mortgage company stakes no claim to it. If I were to try to buy a lot now it would probably be like 1/3 of the project’s budget (if I could even one as decent as the one I own); this alone makes it feel like a no-brainer. My mortgage co is able to fully finance the build with a conventional mortgage, which I was honestly shocked to learn. They just need the plans to appraise appropriately and for the project to be managed by a GC of my choice, and that’s all fine with me. The lot is zoned for medium-density residential so I could build a multi-family. This is the biggest decision-point for me if I move forward – single-family or du/triplex? I’m currently talking to builders / my real estate agent / etc trying to figure out the optimal combination of budget / equity / cashflow but would like to hear other opinions. I have overseen a small residential construction project in my city before and really enjoy the whole process (as frustrating as it can be sometimes). I’m pretty good at managing costs and subs, though might not have to do as much of the latter for this. New construction sells extremely fast and for higher than other properties in my area, if I wanted to take that escape-hatch. Hopefully material costs will go down by the time construction gets started (in summer or later).

submitted by /u/clairvoiaynce
[link] [comments]

I’ve been in the market for a financed investment property and have been getting outbid on every remotely decent deal by cash offers (as expected honestly), so I’ve been researching building instead and it’s looking like a really good option for me right now. Do you have experience building a rental property and have any advice? Otherwise, considering the following details, would you do this? I own a residential lot free and clear – I paid nothing for it as it was included as a “gift” along with the purchase of my primary residence some time ago when we were in a buyer’s market. I have verified that my mortgage company stakes no claim to it. If I were to try to buy a lot now it would probably be like 1/3 of the project’s budget (if I could even one as decent as the one I own); this alone makes it feel like a no-brainer. My mortgage co is able to fully finance the build with a conventional mortgage, which I was honestly shocked to learn. They just need the plans to appraise appropriately and for the project to be managed by a GC of my choice, and that’s all fine with me. The lot is zoned for medium-density residential so I could build a multi-family. This is the biggest decision-point for me if I move forward – single-family or du/triplex? I’m currently talking to builders / my real estate agent / etc trying to figure out the optimal combination of budget / equity / cashflow but would like to hear other opinions. I have overseen a small residential construction project in my city before and really enjoy the whole process (as frustrating as it can be sometimes). I’m pretty good at managing costs and subs, though might not have to do as much of the latter for this. New construction sells extremely fast and for higher than other properties in my area, if I wanted to take that escape-hatch. Hopefully material costs will go down by the time construction gets started (in summer or later). submitted by /u/clairvoiaynce [link] [comments]

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