I Built a Quad. Here Are My Real Costs. (Real Estate Development and Build to Rent Training)

[@RehabValuator]

Leave me your thoughts, comments, questions below! Free Land Due Diligence Checklist: RehabValuator.com/land 4 Duplexes Real Costs Video: kzbin.info/www/bejne/Y6qaiZV9jLOtbNk The Software Used In This Video is called Rehab Valuator. It does everything from deal analysis to lender presentations to full project management and tracking! Get 2 Week Test Drive Here: RehabValuator.com/trial

[@alpinismutilitar3886]

Thank you!

[@RehabValuator]

@@alpinismutilitar3886 you're welcome!

[@psychoT233]

The amount of value you provide for free is unreal. Thank you so much.

[@RehabValuator]

You're welcome! Glad you found the channel

[@FunkInvesting]

This information is amazing for those who are trying to get into Multifamily! Thanks for sharing!

[@RehabValuator]

100%

[@Coemuze]

Congratulations on your wedding anniversary. May the journey ahead be filled with love, lots of money, good health and beautifully-raised children, grand-children and great-grand kids. Thank you for all you do!

[@RehabValuator]

Thank you so much!

[@BJ-fu4zy]

Just built a duplex. Thanks for all you do 🙏🏾

[@RehabValuator]

That's awesome! Congrats! Got more coming?

[@BJ-fu4zy]

@@RehabValuator Yes indeed! I used your software to get a higher appraisal amount too. Sent the appraiser comps from your software and they raised the appraisal amount 💪🏾

[@RehabValuator]

@@BJ-fu4zy love it!

[@SpreadNinja]

Where did you build?

[@RGforLife22]

@@BJ-fu4zycan we see on google maps?

[@obeto756]

Daniil, thank you for all the valuable info on building. I notice you have no half baths in any of your units which usually come in handy if tenants have guest. Have you gotten any feedback from tenants over the years?

[@RehabValuator]

Half baths are a nice touch but we don't find that in our units it's worth the cost. It also eats into livable space. We typically make at least one of the baths accessible from public areas of the unit (living space) and that works just fine. If you have room and $ to add half baths, then definitely do it

[@lasha4585]

Thank you, quads will work perfectly for my plan. 😃

[@Alucard6961]

Very excited to see a new project. My wife and I are watching your videos to learn how to do just this in Colorado

[@RehabValuator]

Awesome!

[@postwala2667]

Me in colorado as well...join hands.

[@Danilyn_Livao]

Wow, this is incredibly informative! 🙂 I really appreciate you sharing your journey with us. This is definitely inspiring for anyone looking to take on a similar project!❤

[@RehabValuator]

Glad you enjoyed the video!

[@sharongordon-smith176]

Everytime I get an email from Daniil, I stand to attention. So inspiring.

[@RehabValuator]

No need to stand to attention. Just click whatever I send you in the email :)

[@legacyrydeshare3478]

Definitely 👍🏾

[@cheddaman5169]

Pretty cool I designed something similar for a arch design class years ago

[@RehabValuator]

Awesome!

[@xBUSYWORKSx]

I live in Richmond, know that exact spot, am also looking into building on a skinny lot lol. small world. The property Im looking at is barely under the needed size for zoning and would need an exemption from the code though which is risky.

[@RehabValuator]

Small world!

[@BelieveMotivations]

Nice! Will Start in this in Sweden soon just need to work some capital up.

[@RehabValuator]

Let's go!

[@savatyreutov4329]

Hey, Im a New Real Estate Developer here as well.. I'd love to see a video on your 16 unit across the street. Cost & returns broken down.. I just finish 4 residential code tri plexs, 12 units in my area & my next project that I already have land for is 24 units commercial. Id love to see how you did your 16 units so I can learn . Thank you

[@RehabValuator]

Will try to do that one next. Still auditing my costs!

[@savatyreutov4329]

@@RehabValuator awesome, thank you

@ 43:06 I think you did the right thing by spending all the extra money on the balcony. If you had cut corners and say there was a party and a lot of people are on the balcony and it collapsed, you would be legally liable big time for cutting those corners. Also had you used wood or other materials you would have to replace those decks over time as they rot or get worn.. the cement and metal will last a whole lot longer so its basically doing it right the first time and not having to do it over again and costing a lot more down the road is actually cheaper in the long run even if its expensive up front.

[@RehabValuator]

It's definitely sturdy construction. Not going anywhere. Will have to paint steel every 8-10 years but otherwise fairly low maintenance

[@marykingdom-g2s]

@@RehabValuator Instead of using wood why not use the artifical decking which is lifetime and Sturdy. No maintenance and last for many years. Is there a reason why that type of material was not considered?

[@RehabValuator]

@@marykingdom-g2s we use composite decking all the time in other projects

[@DanielDuranx]

Always enjoy watching your videos. Thank you good sir!

[@RehabValuator]

Very welcome, Daniel!

[@Easyservice-x8q]

I love watching all your videos

[@RehabValuator]

Glad to hear it!

[@Easyservice-x8q]

@RehabValuator You make very nice videos

[@GihanElzahaby]

Hi, just been introduced to the channel yesterday I think you are adding a great value and was wondering if this material you are providing could be applied in Canada or just in USA?

[@RehabValuator]

Yes absolutely, though every market is different in terms of development feasibility, zoning etc. But there's plenty of real estate development happening in Canada :) I was in Toronto a year ago and that city, for example, is exploding

[@rezatashakori2]

It’s the same building code for quad in LA as well but the 3” fire meter costs me 70k for the fourplex

[@RehabValuator]

Yikes!

[@XYZ-Drafting_and_Designs]

Thanks a lot, Daniel. Happy anniversary.

[@RehabValuator]

Thank you!

[@AmbiguousAbsolute]

Love your stuff! I was wondering if you have covered how to get reliable tenants and what that process looks like? I'm planning on building a triplex or quadplex and living in one of the units as a first time home buyer hoping to take advantage of an FHA construction loan; however, I'm concerned about the amount of time it may take to get tenants in the door. Can the schedule for when mortgage payments start after construction completion be flexible?

[@RehabValuator]

We have covered that in one of our Inner Circle trainings - specifically on leasing and property management. It's available along with about 4 years of other archived trainings if you sign up: RehabValuator.com/inner-circle

[@not2late2game53]

Happy Anniversary ! You are blessed :-)

[@RehabValuator]

Thank you very much! Indeed

[@TheDanMan06]

Hi I just found you today. I want to get into incremental development/ missing middle housing. I believe your videos will be valuable to be so thank you!

[@RehabValuator]

Awesome. Missing middle housing and incremental development is exactly what we focus on both in our business and in teaching so you're in the right place!

[@TheDanMan06]

@ what type of teaching? Is it a program or are you taking about the KZbin channel?

[@RehabValuator]

@@TheDanMan06 youtube channel. I am working on something more formal for next year also - fyi

[@josephlundy3534]

Thank you for educating instead of entertaining. I look forward to the rest of your videos and eventually your programs

[@RehabValuator]

Thanks for watching!

[@ramgonzales8079]

Excellent content. Do you have a video analyzing the cashflow for this project? I'm working on a possible triplex but numbers aren't looking so good so far. Also, how did you address parking?

[@RehabValuator]

It cashflows clean about $600 per door. What kind of cash on cash return are you seeing in your analysis? These days if I am hitting anything north of 6-7% during first year, it's good enough. Cost of construction and cost of $ are still high but over the long run these projects are awesome wealth builders

[@ramgonzales8079]

@@RehabValuator Right now I can't even get it to pencil. Total cost of $825K (hard and soft plus land). Lot is 50x100. Midblock. 3 units, 2/2.5, 1100sf. Rents at 1,800 ea (San Antonio). What are your units renting for in Richmond?

[@RehabValuator]

@@ramgonzales8079 run it through Rehab Valuator (follow the training in my other videos). You can even use the free version for the analysis. Curious what your cash required and cash on cash will be. Your rents are probably a little low. The 1100sq ft units in this building rent between $2100 and $2400

[@RealtyByLance]

Well done!

[@RehabValuator]

Thank you!

[@simdabusiness]

Love the videos. Thanks so much for sharing!

[@RehabValuator]

You're very welcome!

[@zoranvidanovic9244]

You are a blessing and an inspiration. Thank you. See you shortly

[@RehabValuator]

Appreciate the kind words!

[@alexiscruel4009]

Great video as always . So if I watched it correctly did it cost you 164k to build and what is the arv? Are you self financing or using new construction loans? Are you getting 3-4 quotes on each trade or already have ppl in place from past projects ?

[@RehabValuator]

No. It cost just under $1m to build and ABV is roughly $1.3m. Yes we get multiple bids on everything :) Always

[@cbhayden1]

Your videos are exactly what I have been looking for as far as detailed breakdowns of rental properties. My concern is timeline. How long does it take to get your budget numbers? Feels like it could take a year just to get your price per square foot math ready? What is your normal timeline for crunching numbers?

[@RehabValuator]

It's always harder the first time. Once you do your 1st project, you will have a much better handle on TRUE costs in your market and estimating future projects will get easier. In the meantime, if you check out the pre-built templates we give you inside Rehab Valuator Premium, they get you about 70% there at least initially with scopes of work and rough pricing: rehabvaluator.com/apartment-building-construction-template

[@RehabValuator]

In addition to my comment above, if you simply take a 80-90% ready set of plans to GCs (good GCs) they can estimate the project within a few weeks and give you full bids. That's an alternative vs. doing it all yourself.

[@josiemaromi6981]

Amazing educational video!! Thank you for educating us!! 😄

[@RehabValuator]

You're welcome! Glad you enjoyed it.

[@legendaryrecords1]

Great info but how does it apply to the bottom line we are in the business for, did you profit? What was your lending set up? Are you in positive cash flow at completion or are you at a negative until a certain amatorized period? Thanks

[@RehabValuator]

Great questions. That was beyond scope of this particular video but this building cashflows net over $2,200/month. I have a 6% mortgage (12 months through construction and then fixed for 5 years)

[@Evandbec]

Awesome video! What is the average rent for each unit?

[@RehabValuator]

Between $2k and $2400/month

[@tw2800]

Hello Danil, Thank you for this great content. You explained in a prior video that you used to work in finance pre 2008. Did you earn your general contractors license after you left corporate....how did you get your foot in the door doing rehabs and new construction? Are you self taught? Thank you Danil

[@RehabValuator]

After 2008 I got in the game doing one house at a time, all rehabs. Grew from there.

[@tw2800]

@@RehabValuatorHow did you learn the skills for construction rehab? Did you teach yourself? Did you have a mentor? Did you earn your contractor license to dive into residential rehab? Thankyou!

[@RehabValuator]

@@tw2800 I learned by doing. Started with small rehabs, asked a lot of questions, learned, scaled. Don't be afraid to ask questions even if you may look dumb. I am still asking questions all the time and learning!

[@virtualhomestaging8291]

This is exactly we are looking for.🎉

[@RehabValuator]

Glad you found us!

[@herveprophete1286]

Thank you for your wisdom♥️💯 GOOD WORK‼️

[@RehabValuator]

You're welcome!

[@discokillers8674]

Real info. Thank you.

[@RehabValuator]

Glad it was helpful!

[@10tenman10]

Really nice.

[@leebstill]

I’m building 3 post framed quads in Tennessee right now. Costing me just under 200k each, that includes all the landscaping

[@leebstill]

Each unit is 1200 sq ft

[@RehabValuator]

@@leebstill $200k per unit or per quad? If it's costing you $200k to build 4800 sq ft, that sounds too good to be true

[@riumudamc4686]

200k for 4 units? That seems very low. Can you clarify if it is for 4 units or per unit? Thanks

[@leebstill]

@@RehabValuator $200k per building, it’s not to good to be true 😂 it’s the type of construction I am using that’s saving me so much very popular in the south and the area is not expensive for labor. I sourced my own materials and the town does not have crazy permitting processes or costs, also the rental market is very strong but the most I could rent these units for is $1250 a month unless I market to the influx of people moving from out of state.

[@leebstill]

@@riumudamc4686$200k per building which has 4 units in it, please research post framing construction and how affordable and flexible it is. Also it’s because of the area I’m doing it in, to do this in my old city of Philadelphia it was going to cost over $700k to do 1 building

[@10tenman10]

Wow; steel and concrete balconies.

[@spec1147]

$6/sq ft for framing labor sounds like a pipe dream to me. The quotes I'm getting in San Diego are $17-22/sq ft! Thanks for transparently sharing your process as always.

[@RehabValuator]

Holly cow! $17-22/ft just for labor? Is it unionized?

[@spec1147]

@@RehabValuator Some of it is. Most won't even entertain the conversation because I am providing lumber myself. They markup the materials by double on top of that crazy labor rate.

[@RehabValuator]

@@spec1147 insane. May be time to leave Cali! :)

[@spec1147]

@@RehabValuator I've been gone (TX + AZ), I just got back to build these 4 duplexes on this property I've owned for 5 years ;) Too bad I'm a surfer addicted to waves

[@whymindsetmatters]

Big difference between Richmond VA and San Diego

[@abdulazeezkazeem4666]

Great analysis! What is the projected gross income on this property?

[@RehabValuator]

It grosses about $9k/month in rents

[@MrCoolProjects]

What software are you using for your construction budget?

[@RehabValuator]

It's in the video :) Rehab Valuator Premium. You can see the project management capabilities here: rehabvaluator.com/project-management

[@keiogunn]

Great video

[@RehabValuator]

Thank you!

[@Evandbec]

What's the average cost to build per square foot we should be underwriting at for residential builds? I'm in eastern Washington/north Idaho, so somewhat average build costs. Not as expensive as Seattle, San Francisco, LA etc. Thanks!

[@RehabValuator]

If your build costs are similar to ours, we're building residential between $125 and $140/ft depending on finishes, who is GC'ing, etc. Have you seen this video? kzbin.info/www/bejne/Y6qaiZV9jLOtbNk

[@bill2292]

Great insight, thank you!

[@RehabValuator]

You're welcome!

[@legacyrydeshare3478]

I want to visit the finished product. Way to go pal…🇺🇸

[@RehabValuator]

All the units are leased so no more tours :)

[@legacyrydeshare3478]

@@RehabValuatorwe know you have at least 5 more in the pipeline…🤝

[@RehabValuator]

@@legacyrydeshare3478 lots of stuff in the pipeline! Are you on our email list? I host private developer masterminds occasionally and we walk current projects.

[@MrGeezy954]

How can I get on the email list? ​@@RehabValuator

[@gambino617]

@@RehabValuatorare the private developer masterminds part of the inner circle membership?

[@shannoncrider6014]

Hi, I was under the impression that quads qualified as residential, that it is anything larger than a quad that would cause it to go over to the commercial side? Is that based on location? My knowledge is limited, so forgive me if this is a silly question.

[@RehabValuator]

I address this very specifically in the video. Building codes vary by state and even jurisdiction sometimes

[@gleneverett9728]

Outstanding

[@RehabValuator]

Glad you think so!

[@DONIQUEGRACE-FEARON]

“Let me hold something nephew” lol

[@RGforLife22]

Who is this guy!? You can copy my plans if you want , illl show you all my costs I love you , subbed thanks ❤

[@RehabValuator]

I guess I am proverbially "lifting up my kimono" :) If you know what I am saying....

[@robertleparulo672]

What are parking requirements in this area? That is always a limiting factor for me in Florida where I am

[@RehabValuator]

Richmond, VA recently waived parking requirements entirely but we still put 4 spaces in the back here

[@whymindsetmatters]

I thought anything over 5 units was considered commercial code. Quads should still be under residential? Or does it depend on the state your in?

[@RehabValuator]

I cover that in the video. Building codes vary by state and sometimes by locality

[@Chris-bz9pg]

Need to fix title. Great video

[@RehabValuator]

Good catch! Fixed it.

[@riumudamc4686]

Unfortunately the windows will probably be covered with curtains or blinds for privacy. Semi-transparent curtain/blinds will allow some light through.

[@RehabValuator]

Sure but they can open up the blinds all the way and let the light in

[@riumudamc4686]

@@RehabValuator unfortunately in my experience they will leave them closed all the time for privacy, which is unfortunate because of the planning and cost that goes into trying to provide ample natural light

[@bigairbc]

Do you run the project or do you hire a construction company?

[@RehabValuator]

For the time being I am hiring out 3rd party GCs on all projects

[@lilworth]

no parking?

[@RehabValuator]

You gotta watch the video :) Parking in the rear

[@jasonderby7635]

FYI those floor plans are the intellectual property of the Architect. You own the drawngs not the design. If someone copies them the architect could sue them. If you have a good relationship with them, you probably shouldn't try to give their work away to others for free lol. Other than that, awesome video.

[@RehabValuator]

I mean I basically came up with these floorplans and my architect drew them. He's a very good architect but I am not worried in this case

[@robertleparulo672]

I am assuming a quad was still more profitable than just a duplex residential code

[@RehabValuator]

Yes absolutely!

[@reviewsbyHP]

So the cost per unit was about 40k correct?

[@RehabValuator]

Cost per unit to build? No, not $40k. I wish! :)

[@10tenman10]

Really excellent total project description. Not inexpensive to build. A lot if knowledge required to do this sort of development.

[@RehabValuator]

Glad you're enjoying the content and thanks for the great feedback!

[@bvssrsguntur6338]

How to find a builder who can do this at this cost

[@RehabValuator]

Network. Every GC and sub I've ever worked with has come from local referrals.

[@amunderdog]

0:44 My guess = around 500k

[@RehabValuator]

Total construction costs? You were off :)

[@MrJamesstarks]

I thought commercial was 5+ units?

[@RehabValuator]

Watch the whole video. Building code varies by state

[@vittoriobagnarol2135]

You forgot to show the most interesting stuff: cash flow and percentages returns!

[@RehabValuator]

I'll see if I can do another video on it. Wanted to focus on construction here

[@jacobkozlow]

@@RehabValuatoryes I thought this video was very good, just hoping to see that info and how it pencils out cashflow-wise as well!

[@RehabValuator]

@@jacobkozlow it nets about $600/door. Decent upfront sweat equity but nothing crazy given the high costs. Long term it'll do great but initial cash on cash is roughly 8%

[@jacobkozlow]

@ ahhh I see that makes a lot of sense, and how do you typically finance these types of projects?

[@RehabValuator]

@@jacobkozlow local community banks. Got a bunch of videos on that too. Here's a good one: kzbin.info/www/bejne/bnfIkp5_lLx8otk

[@malcolmross2971]

I'm looking for a Real Estate Developer Mentor to help me get in the game. Can I pick your brain?

[@RehabValuator]

So hours of free training on here isn't enough and I need to give you my personal attention for free now too so you can "pick my brain?" :)

[@jeffreymerkeley4526]

@@RehabValuator Malcolm never hurts to ask, but might hurt when he answers, he is a very busy man, as Daniil suggests read all his articles and watch all his videos--a treasure trove!

[@andrebell2218]

Are you still looking for land/lots in Richmond? I may have some you would be interested in. If so how can I contact you? Andre Bell Associate Broker ICON Realty

[@RehabValuator]

Hi Andre. Yes still buying lots in Richmond. Shoot me an email at [e-mail]. Thanks!