Currently, I live here in West Dallas (75212) in an unfinished neighborhood of tract homes. I'd like to know a few things about new home construction.
1.) Is it a sound strategy to build tract and/or spec homes for rent in unfinished neighborhoods?
2.) Where can I find the cost of building tract homes? I've found various sites that sell plans for these homes, now I'd like to find out the cost for labor and material to build them.
Thanks in advance for your input; I greatly appreciate it.
I would start with talking to a realtor to get a feel for available rentals in the area, which would help me determine whether there is additional demand. Assuming there is even demand, I would find out what the 1) avg market rent is and 2) what level of finish out is expected to capture that rent. If there is no demand, I wouldn't pursue that avenue any further at this time.
Once I've worked through that information, only then would I reach out to several contractors. Based upon the finish level you would be targeting, they should be able to provide you with an avg cost/sq foot for new construction.
@Albert Yamoah Hattie gave you some good advice on finding out what the market is for the area. There are many subdivisions throughout the country that have unfinished lots from when the market crashed.
Also, find out if there are any CC&R's on the subdivision. Covenants, Conditions and Restrictions that govern the type of construction, size of houses, etc., as that can affect what you can or cannot do.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!