Do you see anything potentially wrong with this plan for residential new construction?

[Account Closed]

I am building a house...

https://www.dropbox.com/s/2ta56u5d2esz6h9/house.JP...

... that will cost about $73,000 to build, mostly because I'm doing a lot of the labor myself.

Based on current market data, I think I can sell it for $140,000.

Then, I will build the same house again, but in the area around San Jose, CA because I researched home prices and saw that houses go for 5.5x more. I can build the same house for the same $73,000 and profit around $540,000 after the sale and taxes.

Do you see anything potentially wrong with this plan?

[Karen Margrave]

@Account Closed  The listing you included in San Jose for $700k makes the point. It is nothing special.  It's a 7000 sq. ft. lot. and it's listed for $700,000. 

There's no way, even doing all the work yourself (which would take an incredible amount of time) and using all cash, that you're going to be able to buy the land, have plans and engineering done, pay all permits and fees, plus all materials and be into it as cheap as you think even if it's bare bones.

Anywhere in the bay area, land is expensive. It's much like here in Orange County. 

Here's the reality of costs there. San Jose New Construction - Built by BP member Granted your house is much simpler, but that only accounts for a small portion. 

BTW, we are licensed general and electrical contractors, do our own preliminary design, and are licensed real estate brokers. We wouldn't consider trying to build a house completely on our own just using our own labor, as it would be a huge waste of time. Time that is better spent finding the next deals while the actual construction is being done by subs. Though we do handle the excavation as it's more cost efficient.