Some questions...
Are these lots already subdivided? Are they in areas where new homes would sell for $200-250K? Do these lots have frontage on existing streets with public utilities in the street or would it be well and septic?
Have you ever built a house before. Many states require a homebuilders license to build a house. There is usually an exception if the house is to be owner/occupied. How many square feet do the houses have to be?
There are several builders in the area who advertise 1700 to 2100 sq ft homes to be built for 100K or less. I would add the cost of utility hookups, land clearing, permits etc. to be around 20K. I have seen some homes in the area that look alot like the ones advertized and know they are selling for at least 225K. Am I missing some hidden cost? I guess I'm worried that I am missing somthing that will bite me.
Some of the lots are not buildable due to restrictions lack of utilities at the street. I have found several that are on streets with newer homes already in place. I would look at these first as they are most likely buildable and the new home would sell faster. This is a resort community and most of the owners are retired and live in other states and may not be aware of the current market conditions here. I bought my home here last year for 175K and had it appraised recently at 235K. Pretty good equity for 1 year I think. This and the lack of homes in this price range in the area lead me to believe there might be potential for building.
Some questions...
Are these lots already subdivided? Are they in areas where new homes would sell for $200-250K? Do these lots have frontage on existing streets with public utilities in the street or would it be well and septic?
The lots are subdivided in an area where new homes would sell for $225 - 250K. Public utilities are at the street. No wells or septics.
Have you ever built a house before. Many states require a homebuilders license to build a house. There is usually an exception if the house is to be owner/occupied. How many square feet do the houses have to be?
There are several builders in the area who advertise 1700 to 2100 sq ft homes to be built for 100K or less. I would add the cost of utility hookups, land clearing, permits etc. to be around 20K. I have seen some homes in the area that look alot like the ones advertized and know they are selling for at least 225K. Am I missing some hidden cost? I guess I'm worried that I am missing somthing that will bite me.
Your original post is deleted, but as I recall, you said you could buy lots for $15K--correct?
Construction costs = $100K
Site prep & util hookups = $20K
Lot price = $15K
New home $225K
Gross profit/house = $90K
I don't understand why the land is so cheap. Are you sure it's buildable?
Some of the lots are not buildable due to restrictions lack of utilities at the street. I have found several that are on streets with newer homes already in place. I would look at these first as they are most likely buildable and the new home would sell faster. This is a resort community and most of the owners are retired and live in other states and may not be aware of the current market conditions here. I bought my home here last year for 175K and had it appraised recently at 235K. Pretty good equity for 1 year I think. This and the lack of homes in this price range in the area lead me to believe there might be potential for building.