I Built 4 Rental Duplexes. Here Are My Real Costs to the Penny! (Real Estate Development Case Study)

[@RehabValuator]

Leave me your thoughts, comments, questions here! And check out the links in the description above for additional training and resources.

[@mikewilliams4947]

Super valuable content Daniil!

[@RehabValuator]

Glad to hear it, Mike!

[@ynezwells7180]

Daniil is very clear and concise compared to other "building experts". Daniil is unselfish with his information and time. I used the rehab valuator to do a funding request for a fix and flip. The lender immediately gave me the funding at 100%. Thank you Daniil. I look forward to doing more deals for my non-profit.

[@RehabValuator]

@@ynezwells7180 wow that's awesome! 100% these days is not easy to get so glad we could help with that!

[@donaldcozart-amos8690]

If you can do duplexes, why not Fourplexes? Since you can use conventional financing up to 4 units.

[@luisacosta2280]

Most people will never talk straight truth, including mistakes, oversights etc. Much respect for this insightfull video overview

[@RehabValuator]

Thank you. Mistakes are how most of us actually learn :)

[@adamcaruso6345]

CPA here, I strongly agree with @luisacosta2280’s comment. Everyone talks, very few actually walk through their real numbers and fewer ever show their budget versus actual. Refreshing video.

[@leebstill]

I bought 11 acres and building quads on them right now. I love your front & back elevations

[@RehabValuator]

Awesome! You can hopefully get a lot built on 11 acres

[@alexiscruel4009]

Hows your project going ?

[@blurry4945]

We want to see the project

[@trontrontrontron4]

so many videos they just talk and talk and talk about fucking nothing, but here we have actually something that did and its giving us insight into how it all went. thank you for this blessing.

[@RehabValuator]

You're very welcome!

[@TCE4You]

This excellent video, with its clear analysis of your project, has now motivated me to find a piece of property in my area, about an hour and a half West of your area, and finalize a design for a duplex or triplex and begin building in the spring of next year, 2025. Thank you for that great video!

[@RehabValuator]

Excellent! Good luck on your journey and make sure you check back here - have a lot of additional training videos we're cooking up.

[@rhinopaul115]

Your videos inspire me. My goal is to build a duplex before next summer.

[@RehabValuator]

Love it. Let's go!

[@LuisAnthonyMartinezz]

Thank you so much for investing your time in us gifting us with free knowledge, I more than greatly appreciate it! My family and I are currently about to break ground on our 3 Duplex Development project and we are more than ready to start!

[@RehabValuator]

You're very welcome and congrats on your development. Where is it?

[@LuisAnthonyMartinezz]

@RehabValuator Our project is located in Houston, TX. Development is pretty big out here which means there is so much opportunity to build generational wealth.

[@RehabValuator]

@@LuisAnthonyMartinezz That's awesome! Congrats!

[@LuisAnthonyMartinezz]

@RehabValuator In Houston, the city passed an ordinance last year that's called the "Livable Places Ordinance that now allows developers to build up to 8 units under standard residential code, no longer commercial. This changed Houston development big time and my family and i are capitalizing on it! Once again, Thank you Daniel. I watched your videos before I became a developer and you help give me the confidence to dream big and do bigger. Congrats on your overall success as well and an even greater future!

[@mrandolph529]

This was very good. I'm in the trades and I'm glad you highlighted the order of which trades follow each other, a lot of folk don't miss that important step. I'm looking to start building within the next year.

[@RehabValuator]

Make sure you check out the rest of our long-form content on youtube. Will definitely help you get started!

[@yadeno6169]

I wish you the best! I am currently doing research and hopefully in the future I will start building as well. God bless, brother.

[@noealeman1732]

Your videos inspire me. I want to be a real state developer and I am learning so much from you

[@RehabValuator]

Very happy to hear that!

[@danielsanchez-n4v]

Great job, congratulations. For the past 30 years as a general contractor I have been developing income producing properties in different cities as long as market conditions allow. I operate from Texas. I would like to share some experiences with you.

[@XYZ-Drafting_and_Designs]

Hey Daniel, your videos are packed with useful information. Thank you for your time and effort.

[@RehabValuator]

Yes our software is used by Canadian investors and developers all the time. The data portion for now is US only but everything else works great.

[@iamLeBlu]

You’re about to change my family’s life 😢 thank you

[@RehabValuator]

Wow - let's hope so! Keep us posted :)

[@fxdatdo]

Thank you!! Very helpful!!! I bookmarked your vids so I can listen to them on repeat on my way to work :D

[@RehabValuator]

Wonderful!

[@stevemclaughlin9436]

I love what you’re doing. I have some duplexes already but did not build them. I want to design and build my own properties.

[@RehabValuator]

Awesome! Check out the rest of the videos on our channel that go into more specifics about developing duplexes.

[@yasiral-drugh9186]

Thank you for sharing this with us Danill. Always looking forward to a new video from you

[@RehabValuator]

My pleasure!

[@stevexolotl4940]

Thanks for the open book presentation for budgeting small projects with lessons learned. I’ve subscribed.

[@RehabValuator]

You're welcome! And welcome aboard

[@aakashpatel8518]

We need something similar for commerical properties! This break was beautiful.

[@RehabValuator]

Working on a similar video for commercial actually!

[@PressCafeMedia-ng3yz]

excellent video. thank you Daniil for the valuable information. you're a real deal

[@RehabValuator]

You're very welcome!

[@marykrisel7348]

Thank you for sharing such detail! What a blessing to have you sharing such a wealth of information!

[@RehabValuator]

You are very welcome!

[@ArizonaAaron]

I really appreciate this. You’re motivating me. 🙏🏼

[@RehabValuator]

You're welcome! Thanks for watching.

[@tblack1554]

i love your attention to detail 🤝

[@RehabValuator]

I appreciate that!

[@TheRicosauve]

Daniil GREAT video...I've been viewing your videos for some time now and motivated more now than every to GET STARTED. Thank you for laying out the playbook...I already have identified three potential opportunities in my area based upon it.

[@RehabValuator]

That's awesome! Glad you're taking action!

[@brytonsalinas1680]

I'm 20 years old with a fencing company that leans mostly into gates and their openers- I'm going to build myself up alongside my career and catch up to you. I don't know how but I'll have my own companies to build my own portfolios as well. nice vid btw

[@RehabValuator]

Dude! You're 20 years old and already have your own company. That's fantastic. Keep going and I am sure you'll catch up to me in no time. When I was 20 I was getting drunk at college and chasing girls (most unsuccessfully). Grow the fencing company so that it generates consistent operating profits for you. Then reinvest those profits into long term assets that will grow your wealth and give you cashflow for life. Even if you start very very small but do it consistently, you'll wake up at 30, 35, 40 and be incredibly well off

[@HommyRosado]

Stumbled across your video. You're a terrific inspiration! Thank you

[@RehabValuator]

You're welcome!

[@AlbertoRodriguez-fy2vv]

Thanks for this valuable information, hope you the best in your business, you deserve it.

[@RehabValuator]

You're welcome and I appreciate the kind words!

[@coolewurst-hc1rd]

Oh man, developing real estate seems so easy in the US! In Germany our cost/sqft are more than double, and our rents are similar. Land is mostly more expensive as well. I wish we were allowed to be as cheap as you guys.

[@RehabValuator]

Everyone I talk to says developing in Europe is very difficult

[@coolewurst-hc1rd]

@@RehabValuator Yeah man, the big residential players are very institutional. Many of them are cooperatives. Private resi developers pretty much only build for the wealthy, its the only way to make money I figure. Maybe I should come over.

[@RehabValuator]

@@coolewurst-hc1rd come to the US. Plenty of opportunity here!

[@hanaluong2672]

Well, you can go NYC and Silicon Valley to compare the costs with us.

[@cryptonian7706]

@@RehabValuator i'm from belgium. the only way you can make money here is 1: politics and corruption in real estate and 2: build 50+units

[@RichardTomasini]

Plus the depreciation on the back end w taxes… great video

[@RehabValuator]

Yep!

[@royguti1]

Great video! I buy-rehab and do Short Term Rentals mainly in SE Michigan (City of Detroit and the suburbs north of there), want to transition to construction to build Townhomes in a huge lot to the side of one of my houses in Detroit, land is cheap so just have to deal with high construction costs and the rates; I also came as an immigrant at 12!

[@RehabValuator]

Construction costs and cost of $ is high but for sale inventory is low so hopefully you can do well with those townhomes!

[@Man-u-flex]

Congrats on your success brother I’m also a first generation immigrant from Albania, and I have zero knowledge outside of nyc/north nj area which I think is much more expensive to find a available lot if any.

[@RehabValuator]

Thank you!. There are opportunities everywhere. You just have to know where to look. Check out this video: kzbin.info/www/bejne/foaQkmVsfqiGq6M

[@Man-u-flex]

@@RehabValuator Ty brother

[@gracescircle4471]

I’ve watched this video so many times 🤦🏾‍♀️ it’s addictive

[@RehabValuator]

Better than being addicted to most other things! :)

@ 2:36 Those are very nice looking buildings that have good character

[@RehabValuator]

Thank you!

[@lisafarmen9367]

I have already downloaded and printed out the land checklist. .thank you!

[@RehabValuator]

Awesome! And you're welcome.

[@Mark-e5g]

Hey Lisa

[@OracleNotes-u1z]

Thank you for being transparent.

[@RehabValuator]

My pleasure!

[@enisshehu]

Great video Daniil. Thank you!!

[@RehabValuator]

What's up Enis. How are things in Boston? Appreciate the support bro!

[@IndiaMcPherson-x3w]

Hi Daniil, I really enjoyed the video very informative!

[@RehabValuator]

Glad you enjoyed it!

[@milzalino]

Have you built a custom home? Would love to see an in depth breakdown for a single family home. Excellent Video

[@RehabValuator]

We build spec houses all the time. Haven't done custom homes. It's on my list to do some videos on spec home building

[@amenfinance3722]

Really good video. Thanks for sharing!

[@RehabValuator]

Glad you enjoyed it and you're welcome!

[@d.c.poolecustomhomesllc8842]

This is great. The first one I seen that was not B.S. Great knowledge.

[@RehabValuator]

Make sure you check out the rest of the content on the channel - ton of similar videos there!

[@Robertking1996]

This is great! Thank you !

[@RehabValuator]

You're very welcome!

[@anthraX__26]

i found this video valuable. Wish i had a mentor to have learned this early in my life, but time to get started in this

[@RehabValuator]

Never too late to start. Now's as good time as any

[@nufits4462]

Hi Daniil, awesome video on building duplexes, thanks for sharing such tremendous amount of knowledge, with that said, I’m super motived to move forward with a project of my own. I’ve been thinking about this idea for the past 2-years and recently a friend recommended your channel. I have a property with an older home (built in 1929), in the Richmond area, with a mortgage, I would like to demolition it and build a (1) duplex. I was fascinated with how you candidly laid out your Budget, under/overrun, for your construction cost, and walked us through the entire building process (AWESOME). I’m planning to use your videos and software to accomplish my goal. However, to avoid major mistakes, as you alluded, and I was advised to start with an architecture firm in area. So, I was wondering if you could guide in the direction of a firm(s) that is fair and familiar with the zoning in the Richmond area. My hope in doing this project is to generate some great sweat equity in a fast-developing market. Thanks in advance for all your AWESOME videos and software. Best regards.

[@RehabValuator]

Awesome! I don't want to post any architect info publicly at risk they get blown up but email me at [e-mail] and remind me of this convo and I'll see if I can refer someone.

[@KBWFreedomthrurealestate]

Straight Talk! Real Truth!

[@RehabValuator]

Always!

[@the1today]

iman Gadzi Brought me here

[@paulpop1018]

@RehabValuator This was very informative Daniil. Thank you very much for putting it together.

[@RehabValuator]

You're welcome!

[@English12539]

Very interesting video. Good job!!!

[@RehabValuator]

Thanks. Glad you liked it!

[@redentojohnson4340]

This was powerful!!! Thank you.

[@RehabValuator]

Glad it was helpful!

[@DanielBohensky]

Sounds like Richmond landscaping requirements are pretty strict, however your avg rents definitely help considering those costs

[@RehabValuator]

Yep very true!

[@getitsold]

Beautiful man - great job

[@RehabValuator]

Thank you!

[@tausenti]

This was highly educational, learned a bunch.

[@RehabValuator]

Really glad to hear it!

[@OneHauteShot]

Please clarify for operating costs $4440 vs gross $14800= 30%. You teach us always allow for min 35-40% operating costs. In Southern California operating costs can reach mid to high 40%

[@RehabValuator]

Not exactly. If you watch my other videos I always say in smaller properties like duplexes you should be operating somewhere between 30-33%. Heavily depends on how high your real estate taxes are. Larger multifam properties are 35-40% in most cases though we operate even our larger properties sub-35% typically

[@gleneverett9728]

Outstanding

[@RehabValuator]

Gracias!

[@josephbatta1730]

The key to this is land acquisition. Sorry if I missed it, but is there a price per sf for land. I've done a version of this in the past wanting to get back in. Right now, I'm looking at infill with alley access. With duplex zoning approval. Great video. Keep up the good work..

[@RehabValuator]

I show in the video towards the end what I paid per ft for land but that's not really best way to go about determining land purchase price. Here's a longer deeper training on how to properly back into land offers: kzbin.info/www/bejne/b6vNlnqYbJmHo7c

[@macontractors8072]

Thank you for this video. very informational.

[@RehabValuator]

You're very welcome!

[@Recon_Racing]

I was a computer tech and got laid off in 2008. I'm trying to get into real estate now.

[@RehabValuator]

Yep. 2008 is when I got laid off too! Never too late to get into the game!

[@geoffreyreeks2422]

Thank you.

[@RehabValuator]

You're welcome!

[@stevemclaughlin9436]

I was thinking 3 bd 2.5 bath, and about 1,800 sq ft. Each unit having a nice fenced yard.

[@uhhcrave]

Hey! Love this channel, any books you would recommend? ALSO highly advise you write a “book” or a land development handbook - I would totally buy. Thanks Daniel!

[@RehabValuator]

Thanks for the feedback! Couple of books I like: Missing Middle Housing, Soft City, Building Small (by Jim Reid). Start with those. They focus more on housing types than teaching development or land development, but lay a good foundation for the type of development we do.

[@robertglover6538]

@@RehabValuatoryour content and your character are excellent. Subscribed, liked, commented… how else do we show support for you/this channel?

[@RehabValuator]

@@robertglover6538 that's plenty! Obviously we love to bring in new Rehab Valuator software clients if there's a need in your business but otherwise you've already done plenty!

[@uhhcrave]

@@RehabValuator Thank you so much for the responses Daniil. I will purchase these and read them promptly. Hope to stay in touch, thanks again for all your videos.

[@RehabValuator]

@@uhhcrave you're welcome!

[@gillesdeclerck]

Great content. Thanks

[@RehabValuator]

Glad you liked it!

[@icecold5746]

Keys to Success

[@RehabValuator]

💪

[@luxuryrealestate9574]

Thank you for clarification. The numbers were so low I thought maybe you did 3. (It costs 5 times more in California).

[@RehabValuator]

Cali is nuts

[@jwatkins3447]

Thanks

[@RehabValuator]

You're welcome!

[@TheeRedBaron]

$158/SF is very good. I find we are building stuff at $250/sf in SE PA(including land). Any recommendations/ categories to focus on for keeping costs down?

[@RehabValuator]

Seems expensive. Is this stuff you're building by residential or commercial code? Every time I am disciplined enough to go out and 3 bids on everything I end up saving money vs. going with subs and suppliers I've grown comfortable with. Value engineering your projects always pays off too. There's always ways to save without sacrificing quality.

[@marksimon8393]

Great video

[@RehabValuator]

Thank you!

[@adeolaadeoye-e2c]

Cool thank you🎉❤

[@RehabValuator]

Welcome!

[@jorgerios3772]

What’s something that you wish you did if you were 22 years old. I’m currently a construction management student in NY, I work 2 jobs and go to school I make about 40k per year my goal is to invest in a duplex once I get a good job in construction management. Please any advice would be appreciated. God bless you and thank for you video

[@KJInvesting]

Great content

[@RehabValuator]

Thank you!

[@tonysimons7218]

Great looking buildings

[@RehabValuator]

Thank you!

[@MisterHolaMan]

there's a new building material system that can build a way stronger house for 30% cheaper look into sabs building system and strata foam houses next time

[@ogsvideos6423]

Love this! thanks

[@RehabValuator]

Glad you enjoyed it!

[@alphadesignservices5500]

Nice job Daniil

[@RehabValuator]

Gracias

[@JenniferOviawe-bh7lv]

I like how you clowned Grant Cardone and his ad popped up before your video played 😂😂😂.

[@RehabValuator]

Oh man! 🤣

[@rodb5983]

Pinoy here in the USA 39 units but all used buildings. Scared just like you but we have to move on eventually. It’s making me sick about politics when your existence is in question

[@RehabValuator]

Throughout history everyone has been scared about state of the world and the future. Today is no different. But it can't stop us from living our lives or pursuing progress

[@SirMrDany]

I wish this could work for me. There is much I don't like about the US, but when it comes to oppertunity for stuff like this they are far superiour. I wish I could get these things going over here, but banks will lend no money and finding anything remotely fitting is very hard. The market in The Netherlands is very different and I wish it would get to be closer to what the US has.

[@RehabValuator]

Move to the US! :)

[@SirMrDany]

@@RehabValuator Honestly, maybe. I am happy where I live when it comes to all other stuff, friends, family, the general public safety etc. It's mainly my more entrepreneurial side that does think about it. More oppertunity to create wealth and build stuff, less taxes etc. It's difficult.

[@howardjordan4809]

Nice work! Would love to learn from you!

[@RehabValuator]

Make sure you join our email list. There are lots of different opportunities to learn

[@allnetservicesincentralcal1195]

Daniil, Great video and thank you for all your effort in sharing your experience. Question: I see a GC Fee of $158,900 on the expense list. Is this a plugged number to cover your in-house effort it required to GC this project, or is this 12%-13% of the total cost to build used to pay an actual GC? Thanks again for the insight on a project such as this. Russ

[@RehabValuator]

Hey Russ. In this case this was $ paid out to a GC via cost +. It was actually more than 12-13% but had a cap on it so came out to that % in the end

[@mukbangyesplease4905]

I love this😍

[@RehabValuator]

Very glad to hear it! :)

[@arthurgaboyan7774]

Thank you

[@RehabValuator]

You're welcome!

[@sukhrajaujla8678]

Hey can you do a video on every permit and inspection needed to build as well as warranty and insurance

[@RehabValuator]

Hard to do because it varies by county and by type of project

[@sukhrajaujla8678]

@@RehabValuator Okay thank you for the information, do you notice any reoccurring permits and inspections

[@adriankennedy2492]

Such a good video, I plan on getting your gullies as well, thank you

[@RehabValuator]

I am not sure what "gullies" is but I am glad you liked the video! :)

[@adriankennedy2492]

@@RehabValuator guides, software.. typo. Thank you

[@jamzempire]

30 seconds in the video I subscribed! What are the chances of getting on a phone call with you for 10 minutes?

[@RehabValuator]

Glad you subscribed. My one on one time goes only to my kids, my wife, my employees and a few clients who pay me a lot of $$ :) But email me at [e-mail] and let me know how I can help you and I'll do my best

[@WonderwallYoutubeShots-mn4rg]

Thank you very much for this presentation. Those duplexes look real nice. Is it possible for me to get the floor plan of the 4 apartment duplex? Who are the architects?

[@RehabValuator]

No, sorry. I highly suggest you hire a local architect in your market to work with who understands your local zoning, building codes, architectural styles and construction methods.

[@Asheyadixon]

This is amazing information and thank you for being so candid. Are you penalized in any way for underbidding? Do you just explain the situation and request more money?

[@RehabValuator]

My construction loan is fixed going into the project so the biggest penalty is that typically budget over runs have to come out of cash (my cash or investor cash if I am using investor money, which I usually don't).

[@dougdorrer4622]

Change orders aside, why don't you hold your contractors and sub to their bids and cap overages?

[@RehabValuator]

Good question. We normally do. But in this case we built a prelim budget, started the project and then some of the actual costs were coming in in real time. On bigger projects we can get everything bid out 100% ahead of time and get GMPs

[@iamLeBlu]

Great thank yoy

[@RehabValuator]

You're very welcome!

[@JamCapital]

Great video, very informative. I wonder how these number come compare to my local market (Bay Area, California). I am very interested in doing this locally.

[@RehabValuator]

Numbers definitely will differ in CA. Rehab Valuator gives you total flexibility in how you enter your own costs and scopes of work, so you can tailor it to your market and your projects.

[@claytonhaymes3310]

Is there a way to enter my local markets cost to build per sq ft in building out my budget? Instead of entering the total sq ft of the duplex to get an estimated budget.

[@RehabValuator]

yes of course! The budget templates are 100% customizable to your specific projects and costs. You can build them out in any number of ways

[@AmoahIsaac-d8u]

Thanks you very much ❤️☺️

[@RehabValuator]

You're very welcome!

[@mikevinitsky8506]

Most markets I see that it is much cheaper to buy already built older units than to develop. Why do developers build? It seems like you won't recoup your investment. What markets are cheaper to build than buy rental real estate or real estate built to be sold?

[@RehabValuator]

I don't know if that's true at all. Some cheaper markets sure, but in most markets existing assets have a lot more competition to them from investors and you can't buy them any longer below replacement cost. That's why we build - to have a brand new, high quality asset which is attractive, maintenance free and easy to manage.

[@ShellyHuSeattle]

Very nice presentation! Thanks! How many projects this software can manage?

[@RehabValuator]

Hi Shelly. It can manage as many projects as you like!

[@shadmusic9289]

your finished product photo shows 3 duplexes but you indicated you built 4, which is correct?

[@RehabValuator]

It was 4 duplexes. My photos show 4. You're misinterpreting the pics and I bet I know why. The duplexes are attached so the 2 buildings in the middle are the 4 duplexes. The "duplex" on the right is actually a separate set of single fam attached homes we built/sold

[@whosetheman2007]

Great video! So the over 400k cash that you invested into the property, was that your own cash or did you have investors in say a syndicate? Im thinking that you are going to refinance in like ten years at 75% ltv?

[@RehabValuator]

This was my own cash. No outside investors. I should be able to refi in the next 5 years and get most of it out assuming rates are where they are now or dip

[@amazingwoodcraftz7431]

Great video and explanation of development. Quick question: what are your resources on where to find genuine, authentic private money lenders to fund your deals?

[@RehabValuator]

We actually have a fantastic course on this: ArtofPrivateMoney.com Teaches you how to find real legit lenders and build rapport with them rather than running around asking random people for money

[@CivilianDan]

Did I miss how many beds/baths? If each unit is 1,200 square feet (9,600 ÷ 8 units), I'm guessing they are 2 bed 1 bath units?

[@RehabValuator]

Close! They're 2 bed 2 bath units. We always do 2/2. Never 2/1 or 2/1.5

[@Nova-m8d]

You should build with light gauge steel instead of wood.

[@RehabValuator]

Noted!

[@OracleNotes-u1z]

Do you build out of your state as well or just on your local market?

[@RehabValuator]

Just in our local market

[@adventconstruct]

Nice breakdown Daniil, I’d love to start building here in Oklahoma, how did you finance your first project, was it a single family home, new construction or fix and flip?

[@RehabValuator]

I got started doing single family renovations, mostly gut renovations, then scaled up

[@adventconstruct]

@@RehabValuator is that what you’d recommend, I’ve been in construction for over 30 years and need to make a transition from doing the work daily. Unfortunately my credit isn’t great currently.

[@RehabValuator]

I personally think it's a good idea to have some rehabbing experience before you dive into new construction but it's not necessary. If you've already been doing construction, what you now need is to source deals and line up $$

[@kaderka89]

Can you post a link to the software you’re using?

[@RehabValuator]

It's called Rehab Valuator. You can get full test drive for 2 weeks here: RehabValuator.com/try

[@RealEstateRafeeq]

How did you produce the soft numbers to compare the final cost to? I’m a realtor that’s currently pivoting towards developing.

[@RealEstateRafeeq]

Quotes?

[@RehabValuator]

Quotes and past experience/bids

[@kunleanifowoshe913]

@rehabvaluatorkindly awesome video, could you kindly tell me what software or app you are using for this budgeting

[@RehabValuator]

It's called Rehab Valuator. You can get more info here: www.RehabValuator.com

[@riumudamc4686]

Could you be underestimating your time managing the property (even if you are managing a manger)?

[@RehabValuator]

Anything is possible of course. In my case I have an in house management company that has incredible employees and requires very little oversight.

[@riumudamc4686]

@@RehabValuator thata good. They probably only contact you when they have problems only you can solve!