Hi,
My husband and I are considering building a new duplex and then renting the rooms out. We will be doing the work ourselves, and will be working under a licensed contractor. Has anyone else done something similar? Does this sound like a good investment? We are new to real estate investing and would appreciate any information and advice you have to offer. Thank you!
Brenda & Troy
Howdy Brenda & Troy:
Do a lot of homework on this idea. What can you build the property for and rent it for? It is exciting to build and almost exciting to buy and rehab. I am buying and rehabbing for less than half the cost to build new. I just bought a 4 plex for $20,000 and will spend $25,000 doing the rehab for over 2000 square feet. It would cost $120,000 just to build plus land and permits and carry costs and utility taps. I may be finding tremendous deals in a bad area but I am going for cash flow and a quick flip too. Just make sure you consider all the costs involved and time and hastle factor too.
Thank you Ted…We will certainly take your advice. We promise we won’t jump into anything. 