I currently purchased a lot and fixing to work a deal on a spec home.
Also, I have a contract on a home for long term rental income.
If all goes well, I shall continue with the lot purchase and building plus trying to gain more properties for rental income. Shooting for 10 years and 10 properties. Good luck to you all.
Contractor 路 Ocala, FL 路 Member since 2014 路 31 posts 路 14 votes
6y
Hi,
I have worked with a contractor to do new construction spec builds. Depending on land costs you can be all in at 120-125k for a house worth 158-165k depending on location.
We have worked with a couple of investors that bought new construction for rent and they have done well. I am meeting with a builder on Monday to talk about what options are available. The big issue right now is finding lots to build on in the right neighborhoods. But @Michael Mims is correct, the pricing is good and the yields are strong.
I currently purchased a lot and fixing to work a deal on a spec home.
Also, I have a contract on a home for long term rental income.
If all goes well, I shall continue with the lot purchase and building plus trying to gain more properties for rental income. Shooting for 10 years and 10 properties. Good luck to you all.
Investor 路 Lake Worth, FL 路 Member since 2016 路 3 posts 路 1 vote
6y
Lynn, that sounds very encouraging. I will be visiting Ocala next month to see about single family for LTR. Your post to give me hope that it is possible. Thanks! Teresa
Investor 路 Ocala, FL 路 Member since 2016 路 299 posts 路 110 votes
6y
My real estate agent works with a builder that builds quads in Ocala. She told me the hardest part is finding the land. I haven't looked into it since I buy SFH's. If you need a number, message me.
@Marelyn Valdes, that is absolutely correct, finding the land is the biggest challenge. There are a lot of people competing over not much in terms of finished lots. You almost have to watch every day to see what comes available and need to have feelers out for off market lot deals. It is a battle!!
@CLAY LEHMAN my friend bought a lot and has it listed for sale with a builder. They agreed to list one of the models the builder can place in that lot, so the house is whats listed on the market. Only thing is that for construction to happen a buyer has to come with either cash or a construction loan. What are your thoughts on this, sir?
@Lynn Samatulski this sounds favorable to your friend, if I understand correctly. How will the profit on the sale of the house be allocated between your friend and the builder? If the builder is going to build for cost and your friend will be able to sell for market value, that sounds like your friend will be able to gain the profit of building a spec without having to put much at risk. So reads as though that is a good deal. Do I understand that correctly?