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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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How to make sausage in 10 easy steps

Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Posted Oct 5 2022, 16:22

Thanks for clicking.  NO, I am not actually going to make sausage.

I am a local developer in Jacksonville, FL and I am going to show you what it actually takes to construct a Build For Rent house in Jacksonville, FL.  I doubt it will be completed in 10 steps, but it was a good headline.  All the tasks and subtasks will far exceed the 10 steps!  Buckle up it will be a fun ride...

I have 4 lots on the North Side of Jacksonville and will be constructing 4 identical houses, there are 2 lefts and 2 rights.  The houses are 3/2 with a garage, 1293 sq ft heated, and cooled,  total square footage 1693 with garage and porch.

My goal is to have the first house completed by April 1, 2023.

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Scott Mac
  • Austin, TX
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Scott Mac
  • Austin, TX
Replied Oct 5 2022, 19:11

Hi Steve,

It looks like an easy-peasy build, no jut outs, simple roof line.

Just some of my thoughts--not suggestions.

[1] Will 4 identical homes lower the value of the homes vs. 4 similar-ish fronts and similar-ish sq ft, so as to appear less low scale?

Or do you think it will not matter?

[2] Will the value be more with the [1] car garage or that space as an extra room 20' x 12'-ish?

[3] Small houses equal no stroage space--will you also build sheds to improve the appeal?

[4] Will you use different window mullens, doors, trim and main colors to differentiate the homes, vs. all one type?

[5] Will you use colored standing seam metal on the porch roof to make it look modern or shingles?

[6] Is this going to be a Hardi-board type exterior or vinyl siding?

[7] Are you spec-ing any 24" doors (people like to eat), or is that SOP in the area (because to me the front door looks kind of slim).

I think it's a GREAT design.

I did a little mockup, the colors I used (to me) are more Seattle than Florida, but just to get an idea vs the line drawing--I can see why you think this will be a great rental!

I put in a wider front door (with a sidelight), bout otherwise stayed true to the line drawing.

Good Luck!

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Oct 6 2022, 12:09
Quote from @Scott Mac:

Hi Steve,

It looks like an easy-peasy build, no jut outs, simple roof line.

Just some of my thoughts--not suggestions.

[1] Will 4 identical homes lower the value of the homes vs. 4 similar-ish fronts and similar-ish sq ft, so as to appear less low scale?

Or do you think it will not matter?

[2] Will the value be more with the [1] car garage or that space as an extra room 20' x 12'-ish?

[3] Small houses equal no stroage space--will you also build sheds to improve the appeal?

[4] Will you use different window mullens, doors, trim and main colors to differentiate the homes, vs. all one type?

[5] Will you use colored standing seam metal on the porch roof to make it look modern or shingles?

[6] Is this going to be a Hardi-board type exterior or vinyl siding?

[7] Are you spec-ing any 24" doors (people like to eat), or is that SOP in the area (because to me the front door looks kind of slim).

I think it's a GREAT design.

I did a little mockup, the colors I used (to me) are more Seattle than Florida, but just to get an idea vs the line drawing--I can see why you think this will be a great rental!

I put in a wider front door (with a sidelight), bout otherwise stayed true to the line drawing.

Good Luck!

Wow, your mock-up is amazing. It is probably more than the house requires. The ARV is 225k and will rent between 1800-2000 a month. I only spend a $1 if I can get it back or more than the $1.

1.  There will be a left and right model in each location.  They will be painted in different colors. 

2.  The funds all want them with a garage.  It is a balancing act to try to build to the optimization.  I am trying not to reinvent the wheel. I just need to execute a little better and provide a little more value than some of the other builders in town. 

3.  Have not considered the shed.  No one keeps a car in a one-car garage, it ends up loaded with the kids' stuff.

4.  Builder level except I am going to put in window sills, as a practical durability feature.

5.  Architecture 3 tab shingle for the entire roof. Renters at this price point would not notice or care about the metal roof.

6.  I have historically done Hardie lap siding around the entire house.  Many people use the Hardie sheets, the labor is less, but the material costs more per sq ft.  In the end, they are close enough in cost to spend the extra money.

7.  Your front door looks amazing, but I am not going to spend the extra money on it.

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Oct 8 2022, 11:46

I have received the service availability letter from the utility company, JEA.  I know there are services available on the street.  They use an online system called SAGES.  It is not what I would call intuitive.  Fortunately, they do respond to email. 

I am having the trees removed this week.  There are 14 total from the 2 lots.  They will grind and haul off the wood.  

I will be submitting the first permit this week, landscape.

City of Jacksonville Required Permits 

1.  Landscape 

2. Building 

3. A/C (mechanical)

4.  Plumbing 

5.  Electric

6.  Temp electric pole 

7.  Driveway curb cut to the street 

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
39
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Oct 10 2022, 14:01

The landscape permit went in today.  It's the waiting game...

Hopefully, the drainage will be acceptable.  Generally, they will go by whatever the engineer says.  Missing documents or the wrong version of the documents is usually the biggest reason for the permit being kicked back.  In spite of having a checklist, it always seems to happen.   

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Oct 15 2022, 10:21

The landscape permit was approved.

The building permit has been returned.   We need to add some additional documents and the building review did not approve the drainage.  An engineer must sign it, the survey guy signed this one for me.  I have used the survey guy version before and it was acceptable.

The second house is still under review at the city.

My tree man called and said he would not be able to finish clearing the land.  I have another tree man, but he is more expensive.  My goal was to have the corners of the house pinned by the survey guy before the building was approved.  More on that in a future post. 

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Oct 16 2022, 09:51

This is the lot before any trees have been cut.

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Jeremy H.
  • Rental Property Investor
  • Lafayette, LA
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Jeremy H.
  • Rental Property Investor
  • Lafayette, LA
Replied Oct 19 2022, 22:06

This is very cool, and it seems like you have a great plan in place. 

I personally would love to get into the new construction one day, but I'm sure there is A LOT to it. Baby steps!

Awesome again, I'm following along 

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Donte Flanagan
Pro Member
  • Rental Property Investor
  • Atlanta Texas New Orleans, TN
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Donte Flanagan
Pro Member
  • Rental Property Investor
  • Atlanta Texas New Orleans, TN
Replied Oct 20 2022, 05:08

This is awesome and great title for posts! I’m gearing up for my first new build next year so following your process is eye opening and inspiring! Thank you for sharing all the deets

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Jaron Walling
Pro Member
  • Rental Property Investor
  • Indianapolis, IN
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Jaron Walling
Pro Member
  • Rental Property Investor
  • Indianapolis, IN
Replied Oct 20 2022, 05:12

Thanks for making me hungry. 

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Oct 20 2022, 15:32

This is the same house from last year's build.  This design is all over North Florida.  My front door is angled.  I think in my next revision I am going to change it.

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Jay Hinrichs#2 All Forums Contributor
  • Real Estate Broker
  • Lake Oswego OR Summerlin, NV
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Jay Hinrichs#2 All Forums Contributor
  • Real Estate Broker
  • Lake Oswego OR Summerlin, NV
Replied Oct 20 2022, 15:59
Quote from @Steve Mandelbaum:

This is the same house from last year's build.  This design is all over North Florida.  My front door is angled.  I think in my next revision I am going to change it.

what are you paying to build per sq ft not  including the lot from digout to finish ?
2 years ago in your area we could do these for about 100 a foot or the ones i just finished in Ocala were closer now to 130 to 140 a foot .. but ARV also popped up to 275k when the old ARV was 225k. still thin margins builds all in all.. unless of course your plan is to simply keep them as rentals.

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Oct 21 2022, 04:46
Quote from @Jay Hinrichs:
Quote from @Steve Mandelbaum:

This is the same house from last year's build.  This design is all over North Florida.  My front door is angled.  I think in my next revision I am going to change it.

what are you paying to build per sq ft not  including the lot from digout to finish ?
2 years ago in your area we could do these for about 100 a foot or the ones i just finished in Ocala were closer now to 130 to 140 a foot .. but ARV also popped up to 275k when the old ARV was 225k. still thin margins builds all in all.. unless of course your plan is to simply keep them as rentals.


 I am not sure if I will keep it or sell it. There are too many unknowns in the market. I could keep it, sell it as build for rent or sell it to owner occupied.  I am comfortable with any of the scenarios.

I am doing the build myself. I have a builder's license and a plumbing company. The rest is all contractors. At this point, I am not confident about how much it will cost to build. The prices of commodities are so variable.  In a worst-case scenario, I can get most if not all of my money out and just add it to my portfolio.  Rents are strong and the housing shortage here is not getting any better.

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Oct 26 2022, 15:44

The tree man cometh.  They showed up with 8 guys and were knocking it out when I left this morning.  I will take another picture once they completely clear the land.

I am still waiting on the final approval for the building permit, I am ready to get rolling.  The second house required some additional changes to the plans.  The architect and the engineer are working through the changes.  I am ok with the 2 houses being staggard.  They will most like be completed within a few days of each other.  My subs would rather do both at once.   

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Oct 28 2022, 06:01

Trusted advisor Taffy.

View looking at the street from the back of the lot.

Street View.  QUICK Tip:  Do not include your shadow in the picture.

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Nov 15 2022, 13:17

The foundation has been pined up.  The survey guys market the four corners of the house.  Our next step will be for the concrete team to place the form boards.  Then, the surveyor returns to verify the form boards.  After that is time for some PLUMBS!!!

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Nov 18 2022, 13:46

I was at the property and realized there were some stumps that were grown into a fence and had never been removed.  The tree guys went back today and cut them out.  After Thanksgiving, we will have form boards set.

I ordered the truss' today and am waiting for a wood package quote.  The delivery date is scheduled for 12/15.  The framers are not as busy as last year and my projects are getting more attention.  When building is booming the smaller builders have a tough time competing for attention.

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Nov 18 2022, 13:53

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Drew C Grossman
  • Investor
  • Jacksonville, FL
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Drew C Grossman
  • Investor
  • Jacksonville, FL
Replied Nov 21 2022, 04:17
Quote from @Jay Hinrichs:
Quote from @Steve Mandelbaum:

This is the same house from last year's build.  This design is all over North Florida.  My front door is angled.  I think in my next revision I am going to change it.

what are you paying to build per sq ft not  including the lot from digout to finish ?
2 years ago in your area we could do these for about 100 a foot or the ones i just finished in Ocala were closer now to 130 to 140 a foot .. but ARV also popped up to 275k when the old ARV was 225k. still thin margins builds all in all.. unless of course your plan is to simply keep them as rentals.

This is very interesting. I am currently building small mutli family project in Ocala for $102 a square foot for pure construction cost. We are closer to $115 sqft all in when including land and utility infrastructure per duplex.We have previously built 12 or so new construction single family homes from Feb 2021 to present day and I’ve noticed that building costs have come down significantly since that period where we have built those. The market has also seemed to stabilize at an after build value of $200-$225 a square foot depending on specific location within Ocala and finishes. The biggest challenge for us was making sure the utility hook up was within range as you have the option for standard water vs well or standard sewer vs septic depending on the specific parcel. How was your experience with this equation of the development? Building mutli family vs single family definitely has added a layer of complexity to the equation regarding utilities. In this case we are keeping as long term rentals however most of the people developing besides us are middle man investors taking risk off the table for the builders from a capital standpoint and then selling the product to the end user like s long term investor.
 

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Drew C Grossman
  • Investor
  • Jacksonville, FL
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Drew C Grossman
  • Investor
  • Jacksonville, FL
Replied Nov 21 2022, 04:23
Quote from @Steve Mandelbaum:

I was at the property and realized there were some stumps that were grown into a fence and had never been removed.  The tree guys went back today and cut them out.  After Thanksgiving, we will have form boards set.

I ordered the truss' today and am waiting for a wood package quote.  The delivery date is scheduled for 12/15.  The framers are not as busy as last year and my projects are getting more attention.  When building is booming the smaller builders have a tough time competing for attention.

Hi Steve, 

Thank you for sharing your project updates as this is a very informative forum post for the BP community. I’m experience the same thing with our contractors and getting things done much quicker than this time a year ago. I’m curious to what your wood quote came out to? My partner on the build side informed me that there wood costs are expected to come down another 20-30% in the next few weeks/months. 

Good luck on finishing your project as I am excited to see the final product!

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Nov 21 2022, 08:45
Quote from @Drew C Grossman:
Quote from @Steve Mandelbaum:

I was at the property and realized there were some stumps that were grown into a fence and had never been removed.  The tree guys went back today and cut them out.  After Thanksgiving, we will have form boards set.

I ordered the truss' today and am waiting for a wood package quote.  The delivery date is scheduled for 12/15.  The framers are not as busy as last year and my projects are getting more attention.  When building is booming the smaller builders have a tough time competing for attention.

Hi Steve, 

Thank you for sharing your project updates as this is a very informative forum post for the BP community. I’m experience the same thing with our contractors and getting things done much quicker than this time a year ago. I’m curious to what your wood quote came out to? My partner on the build side informed me that there wood costs are expected to come down another 20-30% in the next few weeks/months. 

Good luck on finishing your project as I am excited to see the final product!
I believe that wood has continued to drop.  My truss cost was down slightly.  It is a custom build, so I don't expect them to change the pricing.  They are re-quoting the wood package.  I expect it to be lower than it was originally.  The concrete is still up from 2 years ago, I don't think it will be lower when I buy it next week.

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Nov 21 2022, 08:49

LOOK MA' NO TREES

Ready to prep land and form board.  The week after Thanksgiving it is scheduled  

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Nov 30 2022, 13:48

Dirt and debris that was scraped off the site.  It will need to be picked up.  

They scraped the site in preparation for the form boards.

Its a little hard to see, but the tree guys missed one stump.  I need them to come back and grind it up.

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Dec 2 2022, 16:06

The fill dirt has been dropped off.  It will be used to raise the foundation.  The slab should be higher than anything around it, this will keep the house dry.  Water will seek the lowest point.  Take a look at a house on grade (slab) and you will see several inches of concrete before the siding and where the house starts

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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
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Steve Mandelbaum
  • Developer
  • Jacksonville Florida
Replied Dec 10 2022, 16:12

The form boards are up.  Need the survey people to approve it and then I will have my plumber rough it in.