Building an 18 Unit Condo or 24 Unit Condo Building

Over the last 2 months myself and a partner tied down 5 lots for condo developments. 

Our first project is a small 18 to 24 unit condo build on a 7499 square foot lot.  

Our objective is to build it, then rent them all out with CHMC financing.  

Stats:

4 stories high

1 level of above grade concrete parking garage on the ground floor

3 levels of wood frame Apartment Suites above, which is about 6300 sq ft per floor.

1 elevator.

The unit mix we’re targeting is:

15 – 950 sq ft 2 bedroom 2 bathroom units

9 – 310 sq ft micro units

If the above does work with the city, then at the minimum we are looking at

18 – 950 sq ft 2 bedroom 2 bathroom units

If you are wondering why we would keep them versus selling them off as condos... there is 3 x more money in keeping them over 10 years, then there is selling them off as condo's.

Why?

Property Value = Net Operating Income / Capitalization Rate

This is a magical formula.