... 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?
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
11y
@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.
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.
Architect · Tacoma, WA · Member since 2015 · 68 posts · 28 votes
11y
I would like to add something for any future readers that may stumble across this post and read through. Architect's drawings are copyrighted and may only be used for a single site/location/client/project unless your contract states otherwise.
Architect · Tacoma, WA · Member since 2015 · 68 posts · 28 votes
11y
@Jean Bolger, he made mention of "talking to his architect" :-). But really, the comment is for future readers. I doubt the OP would head any advice given by anyone based on his dismissal of the quality information given by heavily experience and knowledgeable people throughout this thread.
Interior Designer · Pittsburgh, PA · Member since 2015 · 34 posts · 19 votes
11y
Caroline, yes, things in California are expensive and completely crazy a lot of the time, and some of the building code requirements are just insane. There's a reason that property costs so much there, and it's not *just* because so many people want to live there.
The city and county of San Francisco in particular is *renowned* for onerous code restrictions and approval processes that often drag out for literally years and years. Imagine the carrying costs while waiting for approvals that may not ever even materialize, at any price.
Likewise, there are analagous reasons a lot of us leave. I just saw an article today that said that people now have to be making $150K/year to qualify for a mortgage. Among other issues. And when teardowns cost north of 400K and often even a lot more in questionable and even terrible neighborhoods, well...