Updated almost 2 years ago on . Most recent reply
Exploring a Land Development Venture: Investment Strategy and Advice
I'm currently in the process of seeking approximately 10,000 square feet of land in Texas with the intention of constructing two single-family homes (each will be about $1400 sq ft). I've identified a selection of cities, including Houston and some smaller ones, where the combined costs of land acquisition and construction (estimated at $120 per square foot) are notably lower than the market prices of completed homes.
The plan is to acquire the land using 100% cash and subsequently secure a commercial or construction loan for the construction of two houses on the property. I plan to ensure the land is zoned to allow me make such a move before I close on it. The ultimate objective is to sell one of the houses and utilize the second one for Airbnb purposes.
While I have prior experience with Short-Term Rentals (STR) and Long-Term Rentals (LTR) properties, venturing into construction from the ground up is entirely new to me. I would greatly appreciate any advice regarding the wisdom of this investment path, especially in light of the current market trends. Additionally, any insights on how best to proceed would be invaluable.