Adding SFR(s) to Properties with Existing SFR(s)

[Peter Slivkoff]

Often I see apparently good opportunities to build additional SFR(s) on larger lots that already have a SFR - there is room on some other part of the property for legal lots, zoning is correct, etc. However, when I try to find investors who also build homes, or when I call construction companies who would be able to build such additional SFR's, the cost to build these homes is far more than what the home will sell for. Therefore, I hit many dead ends.

I see these homes going up so I know that people are doing it. How is money made on these deals?