Follow my Nashville new construction project
Hey BP!
I am a Nashville native currently involved in a number of development projects locally. I am trying to be more active on the forums, so I’m going to document a development project from start to finish. I plan on updating this thread weekly and I hope this gives the other members a look into Nashville as well as a feel for what goes into a small development project. I’m currently 2 weeks into the project, so I will get the thread caught up and answer any questions along the way. Let’s get started!
We will be building two homes on a lot where one home existed previously. This is known in Nashville as an HPR (Horizontal Property Regime).
Lot Details
- Size - 50x150 lot
- Zoning - R6 - this allows one or two dwellings with at least a 6000 SF parcel. The houses can be side by side or if your lot is deep enough the homes can be staggered front to back.
- Setbacks - 20’ rear, 5’ side, 37.5’ front. The homes also must be 6’ apart at a minimum. This means that we can go 17’ wide if they are detached side by side, or stagger and lose the road frontage for one home while gaining a more favorable design in my opinion.
Design Details
- Size - ~1740 SF
- 3 beds, 2.5 baths
- 2 car garageport
- Design will have some contemporary and farmhouse aspects
- Concrete slab foundation with polished/stained concrete floors on 1st level
- Hardwoods on 2nd floor
- Tile in wet areas
Financials – Will post a picture of my model, but here is a quick overview. If anyone wants to see the budget to breakdown the build cost I will post it as well. Let me know
- Purchase price - $160,000
- Construction cost per home - $175,000 (about $100/SF is the goal)
- Total cost (land + construction) - $510,000
- Sell price per home - $344,000
- Profit after soft costs, contractor fee, demo, site work, commissions, etc – 50k per house for a total of 100k profit
- Financing with a 10% down 18 month IO construction loan
Pro forma