Looking for advice/recommendation - Vacant Land in Mascotte, FL

5 Replies

Hi BP family!

I'm looking for some advice. I own a vacant land in Mascotte, FL about 40mins west of Orlando.

Recently I saw two new vacant lands got bought by a developer/builder and they are building a brand new construction home on these 2 lots (12625 & 14599 Square Feet or 0.28 & 0.33 Acres) , the finish date is around Jan 2020. The two new homes already listed with realtors and list price is around $223k to $225k respectively, the house is about 1520-1530 SF.

So my question is the follow:

-If I can put down 20% my own money and borrow the rest with hard money or private money will I still able to make some profit after I build the new home and sell it with realtors?

-What is an average new construction cost for a 3 beds/2 baths/1 garage home in Mascotte?

**I purchased the vacant land 10 years ago for $66k (yeah I know I probably overpaid it at that time).

Hoping to get some suggestion or comments to see how can I maximum my profit. If anyone know any home builder/developer in Orlando area that are investor friendly I would like to connect with them as well.

Thank you for taking the time to read this post I know everyone's time is valuable, really looking forward to see everyone's reply.

Thanks,

Jack

Doesn’t sound like you will have much room if any for profits building a house that will sell for $225k price point for a 1500 sqft foot home. Construction alone will cost $150-$175k alone then you need to add interest cost and commissions. No money left after your lot cost.

You should look into selling the lot to a builder.

Originally posted by @Greg Dickerson:

Doesn’t sound like you will have much room if any for profits building a house that will sell for $225k price point for a 1500 sqft foot home. Construction alone will cost $150-$175k alone then you need to add interest cost and commissions. No money left after your lot cost.

You should look into selling the lot to a builder.

Thanks for the reply Greg.

I notice the 2 lots sold recently for $33k and $35k so base on your suggestion to sell to builder I'll probably take a lost of $30k+.

Is this my best option to consider?

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You could have a house built to try to recoup your entire investment. You should talk to the builder and realtor that did the other houses and get pricing and feasibility info from them.

Other than that you may need to keep holding and hope the property values increase over time

There is a lot of development going on just North of Mascotte around The Villages. I'm just 70 miles SW of there. Typically, it costs us about $110-$120/sf to build that type of home where we are at in the Tampa Bay area, but that doesn't include architectural fees, impact fees, etc., so it's going to cost you at least $165K just to build in that area before you get into all of the fees and costs plus what you paid for the dirt. I haven't developed anything in that general vicinity, so the costs may vary a bit. I hope that helps you. The only way I can see making a profit would be, if the area would support it, push the homes size up a bit, but even if sales are at $145-$150/sf, you might simply want to see if you can cut a deal with those developers to dump your lot to them and move on the greener pastures. I hope that helps. Doug

Thanks Greg, I'll try to reach out those builder/realtor.

Also, I notice your title show as developer, by any chance you know anyone down in Orlando area where I can connect with?

Thanks