Charleston South Carolina - New Construction - Jay Hinrichs

25 Replies

https://vimeo.com/115135003

I am posting this for @Jay Hinrichs   as he's having computer issues. This is a video of his new build in Charleston. It's on an extremely narrow lot (16') and is basically a 4 story house. 

I couldn't find the original post in Investor Deal Diaries, so I'm just posting the video for him. Jay can weigh in on all the details. 

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@Cory Calvin  @Karen Margrave  

@Jessica H.  @Michael Seeker  

Thanks Karen appreciate it.  trying to keep this forum up and interesting...

This was an infill in the older area of Charleston an area that 24 months ago no one would have considered building new construction.

numbers are

1800 sq ft  3 bd  3 bath all master suites.

Lot  45k

permits 5k

build cost 200k

sale price 365k  pre sold to a local chef.

I have 7 of these going right now in the immediate area.. lots prices since I bought that one last feb doubled... But end prices also went up a bunch.. so the new ones are all priced at 415 to 430k each and I have no doubt will sell.. Area is a little better than this one as well.

Will post some of the PDX skinnies we do as well.. not nearly as neat as this one though.. we can't go 4 stories and we don't have flood issues like Charleston.

@Ron Drake  

  None at all but we are not in the ARB area and the ARB area is not that tough in Charleston. as long as you meet set backs etc you have no particular arch style that needs to be done... its market driven this is what the market wants...

I love the skinny concept...kinda like the whole tiny house thing.....the skinny house. Do you find these types of homes are in demand in all your markets or this one in particular? Areas where you don't get much land??

@Jay Hinrichs  

@Jay Hinrichs  Very Cool!  Is this in Park Circle?  I really like the side elevation. 

 We used this exact color scheme on a couple of our flips this year.  Dark wood floor, white trim, "Designer White" (or similar) walls.  This seems to be a great formula for Coastal Carolina.  Natalie and I completed 10 flips and 4 wholesale deals in Charleston in 2014.  Our goal for 2015 is 18 flips and 12 wholesale deals.  I have recommended you to several of my investor-friends for partnerships.  I believe Chris A. contacted you.  Happy Holidays.  Look forward to seeing you in January. 

@Russ Scheider  

  46 aiken was this one the one I did in Park circle was on wasp.. I have another one on Oakwood in Park circle going currently just about done.. and 6 going in the inner city all on skinnies.. and yes I did hear from a few of your referrals.  Good times in Charleston.

Will look forward to catching up with you on my trip mid Jan.. Bringing the boss as well.

This one though if you look at the Hood you would not have even in your wildest imagination thought you could build new and sell for upper 3's the neighborhoods are a changing fast.. In all honesty I don't know of another area in the country were we could have pulled this off. 

@Jessica H.  

  These skinnies work in the HIgh density markets of cities with no land. and or tight land use policies..   So yes in Portland Or it works because of land use policy.. in Charleston it works because of lack of land. I have built about 40 of these in the last 2.5 years

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Man I guess I am just spoiled.

Here in GA we get nice land and mini-mansions for those kinds of prices.

I have always been a traditionalist and love warm Earth tones.

So that market there they desire those kinds of houses?? Narrow elongated spaces, no land, lot's of stairs, etc. I guess with flooding they have to build that way.

My personality type is I just do not like constricting lot spaces and buildings. It is interesting to see how vastly different desirable properties are in other states. Lot's of young professional might buy those houses but what would the elderly do without an elevator??

Here in GA the older crowds want ranches on land so the foundation is large and so is the parcel.

Originally posted by @Jay Hinrichs:

This one though if you look at the Hood you would not have even in your wildest imagination thought you could build new and sell for upper 3's the neighborhoods are a changing fast.. In all honesty I don't know of another area in the country were we could have pulled this off. 

 Jay, this is fascinating and it begs a question:  was redevelopment going on around your build?  What did you see that gave you some comfort level that the neighborhood could support this price point?  Knowing the area, I would not have expected to see this.  I suppose the redevelopment is spreading through that area as well?  Awesome build, btw.

@Joel Owens  

I hear ya on space.. however If you look at a map of Charleston its surrounded by water. and the lots were created in the 1600 to 1800' s so they are tiny.. just like any city of that era.  So the Hipsters want to be close to down town.. and they will pay for it.

In Portland were I live, our small lots were created as well in the 1900 to 1930's.. but we have an urban growth boundry.. with a Metro mandated goal to have max density.

A large lot in our neck of the woods these days is 5 to 7k sq ft.

its un heard of to build lots at 10 to 15k sq ft.

Where you live there is sprawl we have no sprawl.. we have a state probably 2 to 3 times the size of GA.. with almost 4 million people  2.5 million live in one 30 X 90 square mile valley ( Willamette Valley) the rest of the state is wide open.. Kind of like Nevada or New Mexico Wyoming etc.

@Derek B.  

  leap of faith... and deductive reasoning and shear luck.

when I first looked at the area I thought no way this is the hood.. but I was shown other transfirmations and thought what the heck its only 250k  if we screw it up we break even or lose 50k but if we do well we can really do well. so it looks like we did well not a home run but we did well.. and we have got our foot in the door.

Hey Jay,

That's cool. When I went to Massachusetts for the first time to see my wife's family it was like I was in a different country. Each state kind of has it's own lifestyle. Some streets were 150 years old cobblestone and you had to wait until other cars passed before you could go etc.

I think I saw Canada has like 90% of it's population live in a few cities on the Canada / U.S. border and the rest of the land is just green space.  I grew up in the burbs so I am spoiled now. Not crammed in like sardines with urban core but not out in the middle of nowhere with no civilization to be found like rural. I guess that is why I love the burbs because it's the best of both worlds.

On your new builds how are you getting them to appraise if lots of older houses on the street?? What are they using for comps??

@Joel Owens  

  there is enough new activity that they can pick up comps.. remember they can use anything within 1/2 to one mile and in these areas that's a whole bunch of houses maybe a thousand. were in your neck of the woods it might only be 50 :)

then they use replacement value as well.. I mean on the block we built on its the HOOD all older homes that really all should be torn down over time.  you should google it

46 Aiken Charleston SC.. you will see what I mean.

Yeah I see it is new builds along with junkie old buildings. You might as well start buying out the blocks and start creating your own comps.......... : )

It's funny I saw on Google a restaurant named Hannibal's kitchen.. lol

I would be afraid to eat at that place.

Those are more block by block old town developments.

Where I live is a master planned community of about 3,000 homes. They go from 200k into the millions. The development was built in the late 90's to early 2000's so we have some really awesome landscaping that has grown out and matured. Lakes and the golf course and about every amenity imaginable.  Our subdivision had lots of different builders so each house looks different which makes it look cool in a good way. Sometimes developers just hit a home run with the look and feel with build out of a community.

I can't stand the cookie cutter box subdivisions without personality and you roast to death because the builder is to cheap to put in mature trees for shading. We have a lot of hilly topo here and our lot is nice and level from front to back which I love.   

@Joel Owens  

  are you in Henry county?  I have been to the country club there can't remember its name but its a Fazio design and has really great homes. etc.

But I hear what your saying.. I lived in the Napa valley for a good part of my life so I understand rural and rural elegance and what money to an area means.. We have our farm workers there in Napa.. but when you go to the little Napa airport there are 40 private jets and the rich and famous are on at their  napa valley estates... !!!  Wont really get anything like that in middle America.

Or take Augusta were you live... Little town with the worlds basically most exclusive golf course. and a membership of the who's who of American industry with some internationals as well.. NO sports star's only Palmer and Nicklous ..  

I live in Cherokee county in Canton, GA so nowhere close to Henry. Over in Hawk's Ridge in Ball Ground they have some really fancy exclusive subdivisions with their own pad for landing helicopters and stuff.

Definitely some more upscale areas in GA than where I live. 

Cherokee county has some of the best growth in the country. I have lived here all my life. Used to live in Woodstock but moved to Canton, GA about 10 years ago.

Bridgemill is one of the nicer developments in the area and it's where I live.  I know we have thousands of home in here but do not know the exact count.

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