Anyone Building Multi's?
I have been looking to buy and rehab 2-4 unit buildings but the areas most of the buildings are in are low income and the sellers are asking too much for the low rents the properties bring in (rents won't support upgrades or renovations) so I'm exploring the thought of building multi fam units for the next higher level income bracket. DOes anyone build multi famiily units? Is it a different process financing wise? What should I
expect inresearching this?
I use to live in warner robbins, ga. it wasn't much there at the time. How is it now? I'm also looking for information on building townhomes let me know if you find anything out and I will let you know the same. **Please See My Profile**
Single family new construction is booming and has at least a few more yrs to continue, Housto Lake rd is being expanded into a 4 lane in the near future Russell will go throughh to I-75. The big developers buy up all the land and the restrict you from building , so their actually cornering the market for themselves. Small apts are still a vague to non exixtent investment here. A few are up and going , 2 -3 A class, most are at least class B.
There are several major differences in financing your project. First you will need a construction loan which is generally moree expensive and the loan to value ratios are different,points are often added just because of the risk! Also the value of the property is calculated on the cap rate of the finished project.Hope this helps.
Mike
Hi Jminor.
In a low interest rate market (like this one) most of the "next higher level income bracket" folks can get a mortgage and buy not rent. This makes it difficult to find tenants for the kind of units you envision. On the other hand since there is an AF base close by you may have enough transients to fill the units. I'd think about condos. Build your Multi-family units and sell them rather than rent.
I suspect that this also expains the low-income tenancy you are finding in the apartments for sale. Those who have the credit and cash have left the rental market to buy.
These comments are completly off the top of my head without any knowledge of your local market so take them for what they are worth.