Build and rent a 3-family house?

Whoever told you this amount - it's not correct. Especially in multi-family house construction, many things have to be considered that do not play a role in single-family house construction.

It should be clear that the amounts cannot be correct.

Just out of interest and somewhat off-topic.
The way you write it, it almost sounds as if a multi-family house costs more per m² than a single-family house.
As a layman, I would have expected that the cost per m² would be lower for a multi-family house, as the ratio between envelope and living space should actually improve the larger the house is. The technology should also become proportionally cheaper. Furthermore, with an investment property, I would have expected the interior fittings (sanitary/floor coverings/electrical) to be simpler than for a single-family house builder, since the investor has to keep an eye on the return, while the builder has their wish list.
Of course, there are also additional expenses in multi-family houses that are not as pronounced in single-family houses, e.g. soundproofing.

... Or e.g. common rooms for bicycle storage, individual cellar rooms or laundry room?

What nonsense. The OP has €50K equity in cash and no longer needs to buy any land! Property tax charges are already incurred even though the land is not yet developed – someone has to pay them. You don’t seriously want to use a few bucks for heating advance payments as a reason to let a million-euro project die?

Best regards
Dirk Grafe

Stay grounded.
You had stated earlier that land and liquid equity will fully go into the project to reach the usual 20% equity share. So please do not count the €50k multiple times.
Property tax is already incurred, yes, but you will agree that it will be considerably higher after construction, right? An extra zero at the end wouldn’t be far off. Put that into relation to the income.
I point out supposed small details because they are no longer so small when it comes to 300 sqm of living space. The amounts are higher than what one is used to as a private individual. You have to develop a feeling for it and become aware of the risks. With €2.5k per month financial leeway, nothing can go wrong. How realistic is that?
By the way, I am happy to let projects die, especially with higher volumes, when obvious basics are missing. If not even the basic idea of a liquidity plan is taken into account, that is given.


Don’t forget the usable area. With a single-family house you have very high shares of living space; with a multi-family house, additional areas come into play (staircases, basements, garages, etc.).

Good evening,

The way you write it, it almost sounds like a multi-family house costs more per m² than a single-family house.

That is also the case; it already starts with the planning .... no planning without a soil survey and preliminary site plan. For infill development, for example, insurance amounting to 6% of the property value must be taken out, etc.

As a layperson, I would have expected that a multi-family house would incur lower costs per m², since the ratio between shell and living area should actually improve the larger the house is. The technology should also become proportionally cheaper.

In terms of size, that is superficially true; however, more effort must be put into the actual construction. For example, the enclosure of the stairwell must consist of 2 x 24cm calcium silicate blocks, fire protection dampers/devices are needed in the ventilation system, and much more. In total, this is not insignificant and eats up the supposed "savings" through the larger area. Also, you must not forget that a multi-family house without a basement is almost impossible to realize; after all, basement rooms are needed for the tenants, possibly bicycle parking spaces.

Furthermore, I would have expected that the interior fittings (sanitary/floor coverings/electrical) of an investment property would be simpler than those of a single-family house builder, since the investor has to focus on the return, while the builder has his wish list.

Housing cooperatives build so spartan; the achievable rent corresponds accordingly. Private investors – especially if they had to pay a lot of money for the land – recognize the necessity to offer appropriate fittings when charging a high rent.

But not everyone is as "green" at heart as the builder whose multi-family house planning I posted above. He is 40+ and he wants it; nevertheless, the object and equity return are astonishing; thanks to 6 x subsidies + investment grant.

Rhenish regards

Thank you. Learned something new again.

Gladly

Rhenish greetings