Posted by ray@lcorn on October 20, 2002 at 16:22:46:
I think you need to tighten your numbers. I don’t see anything for engineering and survey costs, zoning, subdivision and water board approvals (FL is tough on that), legal expenses, loan cost, interest costs, marketing expense, and lease-up costs.
I assume you’ve got the cost of extending utilities included in the cost of the road. At $100 per foot it could be included, but may not include storm water management costs. Are the tap fees for the water and sewer included in the unit construction costs? Likewise landscaping, green space, rec areas and any other requirements that may be required by the development standards in the zoning ordinance. Don’t assume that because the property is already zoned that approvals are automatic. Get a copy of the ordinance and see what the development requirements are.
As to the income pro forma, I don’t know what the expenses will be, whether utilities are included or tenant paid, the tax burden, maintenance requirements, management expense, vacancy allowance, capital reserves, etc.
I suspect that once you get all the costs together it is going to be a tight deal if it is done on borrowed money.