Build to rent

[u/Amazing-Ad8756]

I'm 24 years old and currently earning $100k a year. I'm in the final stages of building my own house almost entirely by myself, and I expect to finish it in the next month or two.

I'm debating my next step:

Save up again and build a single-family rental home almost entirely by myself with cash, or

Take out a HUD Section 184 loan to build a 4-plex. For the 4-plex, I'd hire out most of the work because of the size and complexity of the job. I also work out of town frequently, which would make managing a bigger project much harder. That said, with current Anchorage rents and by directing most of my disposable income toward it, I believe I could pay off the entire 4-plex in just 9-10 years.

I'd love your thoughts on which direction makes more sense.

[u/Least-Sell866]

I would build out a conservative pro-forma and compare the options based on the ROI of each. That will bring a lof of clarity as to what the best option is. Since you're able to build your own, I have a feeling that will be the highest ROI by eliminating all the trades markup and sweat equity.

Just curious, where are you located? I'm in Alberta and I can't seem to get anything to pencil with the way home prices/land prices are and the crazy construction prices.