Updated over 2 years ago on . Most recent reply
Rough numbers for project. Need help if this makes sense
Hi y'all. I have a lot in Brookhaven (close to the Med Center) that I want to build 5 houses in. It is a corner lot with about 11,000 sqft. (67 X 165 ft).
These are my assumptions: Have the lot ready to build houses: $33k
Cost of Construction: $110 per sqft. This is the quote I got from one of the contractors.
Sell price: $350k for a 1,800 sqft house. 3 beds 2.5 baths, 2 car garage.
Costs of sell: $30k per house
Below is a breakdown of all the costs.
The financing cost is 60% of the house value.
So my question is, does this look achievable? I trust the contractor, but from what I have seen, it is cheaper. What do you guys think about my assumption, anything else I am not considering?
Thanks for your inputs.
| Construction Cost | 1,078,000.00 | 62% |
| Admin Cost | 34,932.00 | 2% |
| Sell Cost | 150,796.00 | 9% |
| Financing | 53,900.00 | 3% |
| Lot | 153,120.00 | 9% |
| Profit | 275,852.00 | 16% |
| Income | 1,746,600.00 | 100% |