Out of State Investor - Need Advice

[Jay Miller]

Hi BP - I currently live in Chicago and am relatively new to investing in RE (one flip, one MF - both in Chicago). My mom bought a plot of land in Poinciana years ago and has been sitting on it. I keep getting offers on the place but I'm trying to convince my mom the best play would be to build new constructions ourselves with the help of a full service GC. A quick comp analysis looks like I should be able to fetch $300k+ for a new build (4br/2ba). My question is in regard to costs. Looking online, I see anywhere from $60/sf to $200/sf for new construction, I'd assume depending on finish level etc. In Poinciana, specifically, does anyone have prior knowledge on what I can expect to spend if I hire a full service GC to get this done? Can I build 4br/2ba in the $100k - $150k range? I've also never done a ground up development. What other items (I'm sure there's a million) should I also take into consideration? Any guidance helps. 

Thanks! 

[Jonathan Klemm]

Hey @Jay Miller - Just to confirm you are talking about the Poinciana in Flordia correct?

I can't speak directly to new build cost in FL, but at least here in Chicago, you can expect a new build to be somewhere between $130-$170/SF.  Anything under a $100/SF is not even realistic.  I work on linking up with a local GC as you mentioned and they can better advise you on the specific build cost in that area.

Again, I don' know that market at all but I'd think you could get more than $300k for a 4br/2ba new build.

Lastly, as far as other items to look out for.....I'd start with zoning and find an architect in your area to verify you actually can build and then have him draw up some plans so your GC has something to bid on.