Hi there, we have an opportunity to buy raw land with VA loan . Thinking a good strategy for us would be buying land and building and refinancing then selling or renting. Anyone else do this and have any advice or tips?
I'm not sure if you are looking at a large piece or small piece. I would just think about what the future property taxes would be, as a piece of land can get pretty expensive quick without ag. I think a lot of people are doing what you're talking about outside of town (especially towards the Bulverde/Spring Branch area), so I would want to check out your competition depending on what area of town you are looking at. Maybe also you can get some ideas from homebuilders out there.
it’d have to be an acre at least and we’re looking all over TX at the moment. That’s a good point about the taxes as once it gets developed it could get pricey.
Just a few ideas- maybe Corpus Christi area (I see places with bigger lots there) or places with good school districts.
I am in the process of a new build in Conroe Texas. I bought the land 15% down and now I am working through the city to get the site plan approved. It is taking forever, 9 months so far for site plan development, meetings, and awaiting final approval stamp.
Once this is completed I will be putting 5 duplexes on this property in two phases. Phase 1 has two duplexes and all of the utilities being installed and phase 2 will have the remaining homes put up.
We'll be using modular construction for the duplexes from modularhomesofamerica.com
Homes will be 3 bed, 2 bath with large yards as the property is adjacent to a school system and we want to attract families.
All in it will cost about $1.5 million and will be valued at 2.2-2.6 million depending on cap rates and where we stabilize at.
We are designing the entire project to be investor friendly from interior design to landscaping.
Once it is built we will cashflow a few thousand and may decide to sell depending on the market.
Happy to discuss more if you want to reach out
There is a special VA loan for raw land up to $150,000 I think. It's only available in Texas though. Depending on where you want to purchase, I can help. I serve the Houston area.
@David Edwards I’d be interested in just hearing your experience with the building process. I’ll try to get some questions together so I’m not taking too much of your time. Thank you for the offer!
@Lauren Cutchen yes we are thinking of using the VA land loan , I'm just really trying to figure out if building on it, or getting a modular home on it and then refinancing under a conventional loan and sell would be a good idea? We're also thinking about just making it a rental property if it's in an area that would work..
I wish I could apprentice under you on your project so I can learn how to replicate this in Oklahoma. I believe the future is in modular construction.
Sure, are you building residential or commercial?