Has anyone ever purchased a property just to tear it down to build a new construction? What’s your thoughts on this?
@Tanikia Washington just did it. If the house purchase is worth the value of the land plus the costs to tear down and haul away then it's worth it.
@Rachel Imhof thank you. I saw where I’d have to have experience with a new construction in order to get financed or is this only the case when you’re buying an empty lot to build a new construction? Do you have any pictures of your property?
we do a lot of this in a few markets.. but YES to get financing for tear downs and rebuild or new construction experience will be mandatory. and dont let fake lenders rip you off telling you what you want to hear..
Originally posted by @Julie Marquez :
@Tanikia Washington Usually new construction costs are more expensive than fixing up an old house
@Jay Hinrichs When you do this are you paying for all new impact and hookups fees, or do you save something to avoid those fees?
if there was a home there then impact fees or SDC are not usually paid again.. on some of them were we are adding ADU we have to pay for Water.. but if its just replacing what was there then no..
of course with new builds on a lot that was just created you pay for everything and in our area of PDX that will run 25k to 75k just for permits. and they talk about affordable housing LOL.. pretty hard to do that with those kind of permit fee's..
@Tanikia Washington I just got a construction loan to scrape a trailer and build a new small multi-family. It is a local bank I have a relationship with and have borrowed from them for flips before. I have also done two "scrape to foundation and rebuild" projects before. One was my own nickel and one with a construction loan. In all cases I have a licensed GC pulling the permits and overseeing the projects. I don't know that it is "you" that needs the experience. You need the creditworthiness and a good team on board. Also, impact fees can vary here. If it is inside the city limits they are much higher. I still made a profit but outside the city limits would have been cheaper.
@Teri Feeney Styers thank you.
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