Teardown To Brand New Home- OUTLINE?
Hi,
I have a property in an area that is experiencing a lot of tear downs. They purchase decent homes for 200k-250k, tear em down and put up 800k-1m homes.
I would like to market this to investors with deeper pockets, but I want to be able to outline their costs/profits. However, I have no experience or knowledge on the costs/time frame/ process of building.
Can someone give me a brief overview on how this process works in terms of time/money?
The prediction of demo and construction costs are both straightforward, and predicated upon the size (square footage) of the existing and proposed dwellings. Any local demo contractor can give you an estimate for the demo and disposal of a given structure. The same holds true for the construction of a new home from scratch... if that's the way you want to go about it. In some areas it makes more sense to demo what isn't needed, leave one wall standing and call your project a rehab...
The variable will be Time. The time necessary for approvals to move the project from blueprint to closing.
In some areas you'll need a variance to zoning ordinance, you'll need preliminary and final siteplan reviews, environmental impact studies, traffic studies, potable water and sewerage capacity studies, www.etc.etc.
i'd check into modular homes as well. faster build time and cheaper ... and of course like said previously, research zoning and things pertaining to this in that area.
I'm not sure that modular construction is the indicated choice for the discriminating buyer of a $1M home.
Customization and high end features rule...
If you have the property under contract (or already have title to it), based on the info you supplied, I would recommend trying to sell/flip the property to a builder, not another middle man. Given the value range of the neighborhood, the property as a teardown should go for $200K and perhaps a bit more.