New To Development, How Much To Build Multi-units?
I have some platted lots that I'd like to build on, possibly 4-8 units in one building. The rental market here is pretty low income, but solid, so it would be risky to try townhomes or anything fancy. It's likely I'd be renting to some/all Section 8 HUD tenants. The small town has no city water/sewer, or any businesses for that matter; after the RR decided to go further west years ago, it kind of withered. But it is easy commuting distance to the next larger town and jobs, and people here like living in rural areas.
I have no idea what to expect. I know it can vary wildly, but what's a reasonable estimate (range?) for the cost of building a decent rental building like this, per square foot or in general? Good contractors here get $15-25 an hour. Since I own the land already, construction will be my only cost. The govt authorities like my idea, have few formal restrictions, and won't put up any roadblocks.
If the land is owned outright you should subordinate the construction loan. Figure out how many square feet your going to build. For exampe:
4 plex, 2bd 1ba, 800sft units =
3200 square (feet plus green space) 800 sft
4000 total square feet X $78dollars a square foot
= 312k to build it