I'm moving to the Destin area and looking to get into ground up construction in Pensacola. I've done a successful flip and currently have 7 units, however, I'm tired of unexpected CAPEX. I'm looking to buy a infill lot ~$120K cash and use that as collateral to build a 3/3 SFH with a 1/1 ADU. Anybody do ground up construction in that area and able to answer the questions below.
1. What's the average cost per square foot to build in the Pensacola area ?
2. Barring soil tests, zoning and ensuring I'm on city water/sewage/power, what other factors can bite me on the backend ?
3. Can someone point me to a recommended builder ?
4. Is ~120K an unrealistic down payment for a new build. Leveraged $480K total build cost assuming a bank will issue me 75% LTV on a construction loan ?
1. The cheapest I have seen is around $200/square foot. I mainly build on the higher end $300-$350/square foot.
2. Wetlands issues are common. Flood plain issues (building on elevated structure is common). Good school zones can be hard to find (if that is your clientele age).
3. Depending on budget I'm pretty good, ha! Let me know the project details and I can name a few.
4. Depends on how you structure it. There are 2 banks that do most of those types of loans here.
I'm moving to the Destin area and looking to get into ground up construction in Pensacola. I've done a successful flip and currently have 7 units, however, I'm tired of unexpected CAPEX. I'm looking to buy a infill lot ~$120K cash and use that as collateral to build a 3/3 SFH with a 1/1 ADU. Anybody do ground up construction in that area and able to answer the questions below.
1. What's the average cost per square foot to build in the Pensacola area ?
2. Barring soil tests, zoning and ensuring I'm on city water/sewage/power, what other factors can bite me on the backend ?
3. Can someone point me to a recommended builder ?
4. Is ~120K an unrealistic down payment for a new build. Leveraged $480K total build cost assuming a bank will issue me 75% LTV on a construction loan ?
1. The cheapest I have seen is around $200/square foot. I mainly build on the higher end $300-$350/square foot.
2. Wetlands issues are common. Flood plain issues (building on elevated structure is common). Good school zones can be hard to find (if that is your clientele age).
3. Depending on budget I'm pretty good, ha! Let me know the project details and I can name a few.
4. Depends on how you structure it. There are 2 banks that do most of those types of loans here.
1. The cheapest I have seen is around $200/square foot. I mainly build on the higher end $300-$350/square foot.
2. Wetlands issues are common. Flood plain issues (building on elevated structure is common). Good school zones can be hard to find (if that is your clientele age).
3. Depending on budget I'm pretty good, ha! Let me know the project details and I can name a few.
4. Depends on how you structure it. There are 2 banks that do most of those types of loans here.
Good luck and welcome to the area!
Its reassuring to see someone post per square foot cost that's similar to what I'm finding in my area of Sacramento, Ca. I keep seeing these videos of guys teaching "ground-up construction" and they're quoting build costs of $60-$80/sqft and I'm like HOW?! During the supply chain shortage, I was getting quotes of $375-$425/sqft for our ADU build, but now it's settled down to around $200-$225 in this area.
A good way to find out the lowest cost to build in area is to look up a national builder house for sale in your area. Take the price, knock off 7% profit for low end builders (11% for higher end builders) then back out the land price which can usually be found on the county property appraisers website.
That will give you pretty much the lowest cost to build at that given point in time. Custom or quality wanted? Start raising the price.
Regarding looking for financing, I would recommend you search with banks and a local mortgage broker in the area. Mortgage brokers are able to shop with multiple clients to try and get you the offers.
I believe when you compare your offers you will be able to find out the best way to proceed.
@James Peterson James, in early stage feasibility I do do a residual analysis using new builds in the market common to the project under consideration.
Shoot me a DM and I’ll send you a Pro Forma workbook that runs this analysis.
@James Peterson James, in early stage feasibility I do do a residual analysis using new builds in the market common to the project under consideration.
Shoot me a DM and I’ll send you a Pro Forma workbook that runs this analysis.
Barry - I'll send you a DM now -- I'd love to see how your analysis is laid out :)
1. The cheapest I have seen is around $200/square foot. I mainly build on the higher end $300-$350/square foot.
2. Wetlands issues are common. Flood plain issues (building on elevated structure is common). Good school zones can be hard to find (if that is your clientele age).
3. Depending on budget I'm pretty good, ha! Let me know the project details and I can name a few.
4. Depends on how you structure it. There are 2 banks that do most of those types of loans here.
Good luck and welcome to the area!
Its reassuring to see someone post per square foot cost that's similar to what I'm finding in my area of Sacramento, Ca. I keep seeing these videos of guys teaching "ground-up construction" and they're quoting build costs of $60-$80/sqft and I'm like HOW?! During the supply chain shortage, I was getting quotes of $375-$425/sqft for our ADU build, but now it's settled down to around $200-$225 in this area.
If you think about ADU in sacramento, just use container home, ready to move in container home is 1/3-1/2 of your sqft price.
I'm moving to the Destin area and looking to get into ground up construction in Pensacola. I've done a successful flip and currently have 7 units, however, I'm tired of unexpected CAPEX. I'm looking to buy a infill lot ~$120K cash and use that as collateral to build a 3/3 SFH with a 1/1 ADU. Anybody do ground up construction in that area and able to answer the questions below.
1. What's the average cost per square foot to build in the Pensacola area ?
2. Barring soil tests, zoning and ensuring I'm on city water/sewage/power, what other factors can bite me on the backend ?
3. Can someone point me to a recommended builder ?
4. Is ~120K an unrealistic down payment for a new build. Leveraged $480K total build cost assuming a bank will issue me 75% LTV on a construction loan ?
1. The cheapest I have seen is around $200/square foot. I mainly build on the higher end $300-$350/square foot.
2. Wetlands issues are common. Flood plain issues (building on elevated structure is common). Good school zones can be hard to find (if that is your clientele age).
3. Depending on budget I'm pretty good, ha! Let me know the project details and I can name a few.
4. Depends on how you structure it. There are 2 banks that do most of those types of loans here.
Good luck and welcome to the area!
Thanks for the reply. I'm looking for plots right now, ~200 a sq ft doesn't seem too bad relative to the prices I'm seeing on the market. Just shot you a PM.