Lake Havasu SFR Project-newbie Needs Advice!
Hi all. I am looking to buy a lot in Lake Havasu, AZ. Contract with a builder and build a 3/2 SFR. Based on the value at the end of construction I will either flip it or rent it. This is a first for this type of project for me. I'm looking for input on any or all of the following:
1. Anyone out there recommend an area of Lake Havasu where the lots are cheaper, better, available?
2. There are several reputable builders doing business out there. Can you offer me advise on common pitfalls to avoid with them. i.e. contract, hidden costs, extra costs at end of construction.
3. I have enough in my home equity line to finance the entire project. Is it best to go that route? Will I save money on fees and headaches by funding it myself, or do i just tie up my money needlessly for 9 months?
Thanks, you guys have already been a wealth of info!
[ Edited by bnwbaron on Date 06/09/2004 ][ Edited by bnwbaron on Date 06/09/2004 ]
As you may know, construction projects run over budget. Make sure your HELOC or other sources have the capital to finish and then pay holding costs until sold.
You did not mention the pricing or spec for the house. One option is to build with a prefab or MH structure. The reason for suggesting this is you would be finished much quicker so you could do more deals in the same amount of time. Style and fit to the area might be an issue.
If you could get the 9 months down to 2-3 months from start to finish would be a big plus. Less on-site problems when it comes to weather, things going missing, etc.
John
[addsig]
Hire a real RE attorney. Interview several builders, look at what they've built and talk with some past clients. When you decide on one builder, get their form of construction contract and ship it to your attorney for review. Don't purchase a lot until the builder evaluates it. Try to use one of the builder's existing set of house plans so you won't have to hire an architect.
are there public utility?
gas
water electric
sewer
The additional cost of propane and a septic field can be significant.
If you're unfamilar enough w/ the area to not know where to buy, that could be a gotcha for you too.
One construction is complete would you refi or service the heloc from the rent? (exit strategy)
Having had several horror stories w/ contractor, really do your due diligence there.
If GC can quote you a "not to exceed " price, and has the resources to back it up, I would look at that option.
If you have the land available for construction, let me know, if not yet i could help you find one. Also, you are worried about spending all your resources for a new construction? I have a great solution for you with ZERO money down and with various financing options. Just email me and i will give you necessary information to start building your single family house or multi-unit if your interested.
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(Note: this is not an information where you need to buy, this is the way to start your project moving.)