u/Familiar-Parsnip-476

Should I go out on my own or continue with my family company? I pretty much run everything in the field, marketing, sales, estimating
I don’t run the back office

Make $110,000 a year and not going to get a raise
I have no ownership in the company and haven’t been offered any
I’ve worked in the family business for 15 years

I try not to talk to my father much about business or throughout the day because he’s very short fused

I’m torn between the 2 options

I’m looking at a small townhome development deal in Utah and would like feedback from people who have done ground-up multifamily / build-to-rent / townhome development.

Project:
- 13 townhome units
- Total building SF: 29,146 SF
- Plan is to build, lease/stabilize, and sell all 13 units together as one investment property
- Not planning to sell individually

Base case assumptions:
- Land cost: $700,000
- Construction cost: $3,300,000
- Land + construction: $4,000,000
- Estimated financing cost: ~$102,000
- Estimated closing cost: ~$27,537
- Estimated all-in cost: ~$4,129,537

Operating / exit assumptions:
- Stabilized NOI: $289,135/year
- Base case exit cap rate: 5.75%
- Estimated bulk sale value: ~$5,028,435
- Estimated project profit: ~$898,898

Rough metrics:
- Construction cost per unit: ~$253,846
- Construction cost per SF: ~$113/SF
- All-in cost per unit: ~$317,657
- Sale value per unit: ~$386,803
- Profit per unit: ~$69,146
- Yield on cost: about 7.0%
- Spread over exit cap: about 1.25%

Capital stack idea:
- I have about $105k to invest personally
- Would raise investor equity for the rest
- Looking at a senior construction loan around 70% LTC
- Potential investor structure: 8% preferred return, then 70/30 split after pref

Questions:

1. Does this seem like a good enough spread for a small ground-up development?
2. Is a 5.75% exit cap realistic for a new 13-unit townhome rental project in Utah?
3. Is ~$113/SF construction cost too aggressive for this type of product?
4. Would you pursue this if the base case profit is around $900k?
5. What major risks am I not thinking about?

My biggest concerns are construction cost overruns, exit cap moving higher, lease-up taking longer than expected, and whether the stabilized NOI is realistic.

Appreciate any feedback from developers, brokers, lenders, or investors.

In the process of creating a monster

I’ll get photos once completed

-SB head
-Cams
-Ram air
-Steering damper bracket
-Thin head gskt
-Ohlins Steering Damper
-Core Moto brake lines (delete ABS)
-Castrol SRF brake fluid
-Vesrah RJLXX brake pads
-Front and Rear Pirelli slicks
-Woolich tune
-Clip ons 50mm 0⁰ offset
-Brake lvr gaurd
-Gearing 16T 45T 46T
-520 3Z race gold chain
-GBR case cover kit (4 covers)
-R&G Shark fin
-Woodcraft Bodywork
-Woodcraft Rear sets
-AKROPOVIC Exhaust
-SPRINT air filter
-BREMBO RCS19 Master cyln
-T Drive Rotors 320mm 5.5
-Jetprime quick throttle
-Jetprime race buttons

This thing will be the ultimate track weapon! 🔥

Should I get ohlins suspension or just revolve stock for now? Are the KYB’s good?