Insulated concrete forms vs wood framing in AZ

[ArizonaCentral]

Looking to build a small multi family home in Phoenix, AZ. Maybe a duplex up to a fourplex. If I build it with insulated concrete forms instead of wood frame, will it have a positive effect on the appraisal? (As the structure will be stronger, better insulated, and more resistant to termites and fire than one with wood framing.)

 

[George Hatch]

Every time I've looked at the data here in Southern Calif, I've never seen any difference.

 

[Charles West]

Valuation wise probably a little positive to nothing discernable but income approach not accurate for such small differences. Differences in quality of life in a Arizona summer probably priceless. I was hiking in Arizona about 30 years ago and the Palm Desert is lightweight by comparison. The better the build quality the happier you will be.

 

[Terrel L. Shields]

Insulation foundation walls, and solid cellulose in the ceilings and unit fire walls (boric acid), caulk and seal, geothermal heat pump... maximize the energy savings without the solar panels and charge a premium for rents...good marketing plan in my book. Touting the energy efficiency and low utilities seems to be a win-win in AZ. As for adding value...well, if you have a complete bid for the set up and provide to the appraiser prior to construction, they would likely take into account the cost to build especially if they do the cost approach and I've never done a new construction without doing the cost approach personally but whatever... some appraisers don't. And, for multifamily, I also do the income approach so they all woulda shoulda dovetail.

 

[sputnam]

It's a market question. That means you need to gather appropriate data and analyze it to find the answer. Figuring what the cost will be is simple. Finding enough data to quantify how the market reacts, not so much.

 

[glenn walker]

Nope its at best a quality of construction issue but not extractable because the average Phoenix buyer is looking at price and tenants are very hard on properties out there.

 

[Mark K]

.... Maybe a duplex up to a fourplex. ....

Would tenants pay higher rent for this type of construction? As the previous owner of nearly 20 rental units, I can tell you that construction style of the property is pretty far down their list of priorities. This is an income property; don't spend $$ unnecessarily on things that won't increase the monthly rent.

Instead I'd spend extra $$ on features/construction that would reduce maintenance costs as much as possible. I built a few duplexes and made them as low maintenance as possible. Try to build it as idiot proof as possible since a lot of tenants are idiots.

 

[glenn walker]

Would tenants pay higher rent for this type of construction? As the previous owner of nearly 20 rental units, I can tell you that construction style of the property is pretty far down their list of priorities. This is an income property; don't spend $$ unnecessarily on things that won't increase the monthly rent.

Instead I'd spend extra $$ on features/construction that would reduce maintenance costs as much as possible. I built a few duplexes and made them as low maintenance as possible. Try to build it as idiot proof as possible since a lot of tenants are idiots.

Agree 100% We don't any 2 or 4 units anymore but the less bells and whistles the better and in Phoenix Metro right now there is a shortage of rentals and tenants will pay high rents. The HEAT and Phoenix type Tenants will destroy it long before the termites do : )

 

[ArizonaCentral]

Thank you everyone for your input!