Spec home deal analysis
Hey all! I'm a huge fan of BP... been reading posts for months and finally decided to move forward with a new investment strategy and looking for advice from the BP community. I currently have 2 rental properties that I plan to sell and use the proceeds to build a spec home in the SF Bay Area. Please review the notes below and let me know how you would structure a deal...
$150k cash once current rentals are sold
Looking to build in an area where land is approx $450k
Average house size in this area is 3500sf
Average sale price of houses in this area is $500/SF
I have a day job in the construction industry and would build this house in addition to my day job. I have my contractors license and would hire out most of the work. I would self preform approx 20% of the build.
So, how can I use my $150k cash to build and sell a approx $1.5mil house? Any and all advice is greatly appreciated!! Let me know if you need any more info.