In a dilemma! to build or to sell a vacant lot?
I have a vacant lot (40 feet by 108 feet) near University of Houston, Texas Southern University, and Downtown Houston; and I have just recently re-platted the lot as two separate lots (each is 2,160 sq. ft. UNIT A & UNIT B) to build a duplex. My initial intension for re-platting a lot of this size was to be able to sell one unit if the need arose or to rent out the units as fully furnished mid term rentals, including utilities. I am concerned about the cost of building materials. Initially, I thought of building a three story duplex but found out that the cost would make return on investment very challenging. Any suggestions about floor plans on small lots for two story duplex?
#3 Managing Your Property Contributor
Do you want to build two separate buildings or a traditional duplex (ie semi detached)? You can also look up 40' wide duplex plans.
How much are other duplex buildings selling for?
See price per sq ft and compare it to your cost to build per sq ft.
This may be eye opening one way or another. :)
I will follow up with these.. thank you for your suggestion.
Quote from @Theresa Harris:
Do you want to build two separate buildings or a traditional duplex (ie semi detached)? You can also look up 40' wide duplex plans.
Thanks for your reply. It will be a semi detached duplex.
Hi @Nkechi Jarvis!
Have you decided on what you want to do? We are a local builder here in Houston and we can help you build on this land if that is what you decided. I'd be happy to jump on a zoom to discuss if you'd like.
Practically speaking, you don’t have enough width for a detached duplex. Also, you may not have needed to replat. Duplexes fall under single family code, so you can build up to two units on a single tract unless prohibited by deed. Your question can only be answered by running the numbers. There is insufficient information for anyone to answer your question. But you have the right idea in relation to midterm rentals near the center of Houston, but only if the number work and only if you are in the right pocket of that area. That area still has a mix of great and mediocre lots. I would suggest a 2b/2B on each side. One bedroom down in each unit. I would have 1 car garage on each unit with an additional uncovered parking space. I have one I’m building that will be completed framing in ~3 weeks if you are interested in getting a feel for what might work. But it will all come down to the numbers. Numbers don’t lie, everyone else is suspect.
-
Developer
- http://[email protected]
Quote from @Sebastian Marroquin:Thanks for this suggestion! I'll follow up on this.
How much are other duplex buildings selling for?
See price per sq ft and compare it to your cost to build per sq ft.
This may be eye opening one way or another. :)
Quote from @Chris Tighe:
Hi @Nkechi Jarvis!
Have you decided on what you want to do? We are a local builder here in Houston and we can help you build on this land if that is what you decided. I'd be happy to jump on a zoom to discuss if you'd like.
Hello @Chris Tighe,
Zoom meeting sounds great. We're still considering building.
Hi Nkechi! Just sent you a private message. Have a great day!
Quote from @Nkechi Jarvis:
I have a vacant lot (40 feet by 108 feet) near University of Houston, Texas Southern University, and Downtown Houston; and I have just recently re-platted the lot as two separate lots (each is 2,160 sq. ft. UNIT A & UNIT B) to build a duplex. My initial intension for re-platting a lot of this size was to be able to sell one unit if the need arose or to rent out the units as fully furnished mid term rentals, including utilities. I am concerned about the cost of building materials. Initially, I thought of building a three story duplex but found out that the cost would make return on investment very challenging. Any suggestions about floor plans on small lots for two story duplex?
Funny, I'm in the same position. I have a duplex in Houston on a 8,000+ SF corner lot in a $$$ area (museum district). The income from from the duplex doesn't justify the value it would sell for. So I've debated between:
1) Chopping the two large units in half, making a fourplex
2) Adding a building on the empty land (currently an unused garage)
3) sitting on it as is
4) Selling it off to a developer to let them do what it is they do
5) Knocking it down and building a new multi from scratch
Leaning towards #4
If you pursue #4, how much do you plan to sell it for?
Quote from @Cody L.:
Quote from @Nkechi Jarvis:
I have a vacant lot (40 feet by 108 feet) near University of Houston, Texas Southern University, and Downtown Houston; and I have just recently re-platted the lot as two separate lots (each is 2,160 sq. ft. UNIT A & UNIT B) to build a duplex. My initial intension for re-platting a lot of this size was to be able to sell one unit if the need arose or to rent out the units as fully furnished mid term rentals, including utilities. I am concerned about the cost of building materials. Initially, I thought of building a three story duplex but found out that the cost would make return on investment very challenging. Any suggestions about floor plans on small lots for two story duplex?
Funny, I'm in the same position. I have a duplex in Houston on a 8,000+ SF corner lot in a $$$ area (museum district). The income from from the duplex doesn't justify the value it would sell for. So I've debated between:
1) Chopping the two large units in half, making a fourplex
2) Adding a building on the empty land (currently an unused garage)
3) sitting on it as is
4) Selling it off to a developer to let them do what it is they do
5) Knocking it down and building a new multi from scratch
Leaning towards #4
If you pursue #4, how much do you plan to sell it for?
Quote from @Lee Hampton:
Practically speaking, you don’t have enough width for a detached duplex. Also, you may not have needed to replat. Duplexes fall under single family code, so you can build up to two units on a single tract unless prohibited by deed. Your question can only be answered by running the numbers. There is insufficient information for anyone to answer your question. But you have the right idea in relation to midterm rentals near the center of Houston, but only if the number work and only if you are in the right pocket of that area. That area still has a mix of great and mediocre lots. I would suggest a 2b/2B on each side. One bedroom down in each unit. I would have 1 car garage on each unit with an additional uncovered parking space. I have one I’m building that will be completed framing in ~3 weeks if you are interested in getting a feel for what might work. But it will all come down to the numbers. Numbers don’t lie, everyone else is suspect.
Good suggestion! I will like to see yours to get an idea of what it would feel like. We re-platted the lots at the outset to increase each individual property value and to be able to sell one unit if the need arose.
My next availability is Feb 21 or 22 between 10am and 3pm. I have a triplex i recently completed and a fourplex in the frame stage, both new construction, on the same block near I-610 in Houston. Remind me a few days in advance.
-
Developer
- http://[email protected]
Quote from @Lee Hampton:
My next availability is Feb 21 or 22 between 10am and 3pm. I have a triplex i recently completed and a fourplex in the frame stage, both new construction, on the same block near I-610 in Houston. Remind me a few days in advance.
We can be there on Feb 21 around 10 am. Will remind you closer to the date.
Quote from @Nkechi Jarvis:I'll have to talk to a broker who does land deals in that area. But ultimately what I'll sell it for is what the market will pay. I can tell you that anything under ~$75/sf and I'd keep it. So that's my floor.
Quote from @Cody L.:
Quote from @Nkechi Jarvis:
I have a vacant lot (40 feet by 108 feet) near University of Houston, Texas Southern University, and Downtown Houston; and I have just recently re-platted the lot as two separate lots (each is 2,160 sq. ft. UNIT A & UNIT B) to build a duplex. My initial intension for re-platting a lot of this size was to be able to sell one unit if the need arose or to rent out the units as fully furnished mid term rentals, including utilities. I am concerned about the cost of building materials. Initially, I thought of building a three story duplex but found out that the cost would make return on investment very challenging. Any suggestions about floor plans on small lots for two story duplex?
Funny, I'm in the same position. I have a duplex in Houston on a 8,000+ SF corner lot in a $$$ area (museum district). The income from from the duplex doesn't justify the value it would sell for. So I've debated between:
1) Chopping the two large units in half, making a fourplex
2) Adding a building on the empty land (currently an unused garage)
3) sitting on it as is
4) Selling it off to a developer to let them do what it is they do
5) Knocking it down and building a new multi from scratch
Leaning towards #4
If you pursue #4, how much do you plan to sell it for?
Quote from @Nkechi Jarvis:
Quote from @Sebastian Marroquin:Thanks for this suggestion! I'll follow up on this.
How much are other duplex buildings selling for?
See price per sq ft and compare it to your cost to build per sq ft.
This may be eye opening one way or another. :)
Curious to know what you found out? :)
(rem. that it is not just cost per sq foot... )
1. You have architect fees/ drafter
2. Surveyor and soils if required
3. City fees
4. Utilities (water, gas line, power, sewer etc )
You could be $50k to $100k in before breaking ground on your project + $150 to $250 per ssquare feet to build plus landscaping....
if you are in CA or any place where price per sq feet is selling for $400/500 p. sq ft or higher... then it makes sense.
But if you are in places where price per sq ft is selling for $300 or less... then , really do the math.
May be better to buy and expand or buy already completely built
Quote from @Sebastian Marroquin:
Quote from @Nkechi Jarvis:
Quote from @Sebastian Marroquin:Thanks for this suggestion! I'll follow up on this.
How much are other duplex buildings selling for?
See price per sq ft and compare it to your cost to build per sq ft.
This may be eye opening one way or another. :)
Curious to know what you found out? :)
(rem. that it is not just cost per sq foot... )
1. You have architect fees/ drafter
2. Surveyor and soils if required
3. City fees
4. Utilities (water, gas line, power, sewer etc )
You could be $50k to $100k in before breaking ground on your project + $150 to $250 per ssquare feet to build plus landscaping....
if you are in CA or any place where price per sq feet is selling for $400/500 p. sq ft or higher... then it makes sense.
But if you are in places where price per sq ft is selling for $300 or less... then , really do the math.
May be better to buy and expand or buy already completely built
We're still exploring all options at this point. We now have to change the current architectural plans from three floors to two floors to reduce the cost. We'll provide updates if any progress is made in the near future.
Something to think about is modular homes duplexes on crawlspaces. I would call a few companies and see what they run. This has always seemed like the better option to me with building prices the way that they are.
-
Real Estate Agent Iowa (#S68688000)
- https://linktr.ee/jaredhottle
Quote from @Lee Hampton:
Practically speaking, you don’t have enough width for a detached duplex. Also, you may not have needed to replat. Duplexes fall under single family code, so you can build up to two units on a single tract unless prohibited by deed. Your question can only be answered by running the numbers. There is insufficient information for anyone to answer your question. But you have the right idea in relation to midterm rentals near the center of Houston, but only if the number work and only if you are in the right pocket of that area. That area still has a mix of great and mediocre lots. I would suggest a 2b/2B on each side. One bedroom down in each unit. I would have 1 car garage on each unit with an additional uncovered parking space. I have one I’m building that will be completed framing in ~3 weeks if you are interested in getting a feel for what might work. But it will all come down to the numbers. Numbers don’t lie, everyone else is suspect.
Hi @Lee Hampton,
I sent you a message about your construction.
Quote from @Jared Hottle:
Something to think about is modular homes duplexes on crawlspaces. I would call a few companies and see what they run. This has always seemed like the better option to me with building prices the way that they are.
Thanks for this suggestion, definitely worth checking out to see if the City of Houston will permit such structures. The old houses that are now being torn down in this area are similar to modular homes you described.
Quote from @Nkechi Jarvis:
Quote from @Sebastian Marroquin:
Quote from @Nkechi Jarvis:
Quote from @Sebastian Marroquin:Thanks for this suggestion! I'll follow up on this.
How much are other duplex buildings selling for?
See price per sq ft and compare it to your cost to build per sq ft.
This may be eye opening one way or another. :)
Curious to know what you found out? :)
(rem. that it is not just cost per sq foot... )
1. You have architect fees/ drafter
2. Surveyor and soils if required
3. City fees
4. Utilities (water, gas line, power, sewer etc )
You could be $50k to $100k in before breaking ground on your project + $150 to $250 per ssquare feet to build plus landscaping....
if you are in CA or any place where price per sq feet is selling for $400/500 p. sq ft or higher... then it makes sense.
But if you are in places where price per sq ft is selling for $300 or less... then , really do the math.
May be better to buy and expand or buy already completely built
We're still exploring all options at this point. We now have to change the current architectural plans from three floors to two floors to reduce the cost. We'll provide updates if any progress is made in the near future.
The cost will always be less in a single level home if the lot permits (enough space).