Small house, Big land.

[David D. Morris]

I'm looking at purchasing an 1100 sq ft house on 1 acre of land in a city currently being revitalized.  The current zoning would allow me to build an additional home on this property.

I plan to rent both homes, the current home, and the new home if we build it.

How do I calculate if it's profitable to build an additional rental home on the property?

Other than the actual cost of building the new home, the other major expense would be running utilities to the new home at the back of the property.  Water, Gas, Sewer, Power.

Thanks

David M

[Malcomb Stapel]

@David D. Morris  don't forget providing access to the second home if you haven't factored that already. Your going to need to get with a couple of home builders and ask them what they are completing houses for per square foot currently? I bet it's expensive given the prices I have seen at the Home Depot lately.