ᐅ Multi-Family House Planning. Assistance with Planning / Initial Steps

@toxicmolotow:
You were faster. :-)

Two fools, one thought at the same time.

Hello,

may I quickly join the conversation? I am the partner of Mr. LIyod. We have the following plan:

Purchase 4 townhouse lots,
build 4 townhouses, and then rent them out.

We are only interested in the approximate costs and the steps we should take.

Planned costs:
Land costs: 4 x 400m2 (4 x 4,300 sq ft) – 120,000 €
Townhouse construction costs approx. 100m2 (1,075 sq ft): 4 x 80,000 €
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Total: 440,000 €

We want to finance 500,000 €. The houses will be rented out for around 800–900 € each.

4 x 900 € = 3,600 € monthly x 12 = 43,200 € per year x 10 years = 432,000 €

If we add another 2–4 years, everything will be paid off.

Our question now is: how should we proceed without having to spend money upfront?
1. Negotiate with the landowner
2. Survey the plots
3. Request quotes from construction companies for the townhouses
Or should we consult an architect?

Who can offer advice? Or is our calculation unrealistic?

In which state or region is the construction planned?

I’m really just an amateur, but the way you’re imagining this, it doesn’t seem like it will work.
You seriously don’t believe you can get a terraced house completely built for €80,000? What about the additional costs for the land and construction?

Am I understanding correctly that you want to pay off the "costs" with the rent? Where do you expect to get the money from initially? Taking out a loan? You have to pay interest on that! So what kind of calculation is this with €432,000 and 10 years?

Do you really think you can rent out the houses for €800–900? Is that rent excluding or including utilities? Rental income needs to be taxed. You also have to build up reserves.
How on earth is any of this supposed to work???

@toxicmolotow
I could have asked the question that way too – then I wouldn’t have needed to write the rest! :-)