Got a piece of Land I've had down in Cape Coral for about 5yrs now I picked up through Tax Lien Auction. Sold the ones I had in Lehigh and Alva and this is the only one left, haven't had any action on it in close to a year on Zillow and now listed with an agent with ReMax.
I'm considering putting a 1200-1500sqft block home on the lot and was curious what ballpark figure would be on the price per sqft.
This is new territory to me so very interested in finding a builder in the Cape Coral area to speak with or even a fellow investor that would potentially want to partner up.
I live in the Cape just off Chiquita where there are a ton of model homes and builders.
Some have been here for years and others not. And at the same time, some are good and some are not so much.
Coincidentally, I've been revisiting them lately because I've been doing some rehab on my own home and want to build what I want soon rather than put up with the house I'm living in now.
I happen to like Seascape Builders. They use ICF (steel reinforced block) with excellent insulation properties.
There are others I can recommend, but I'm out of time at the moment. Feel free to message me.
Depending on what type of finishes you're looking for, I'd baseline this at roughly $100/sf. If you have blueprints and don't mind going through a GC rather than one of the thousands of local construction companies (that typically eat up 10-20% in profit), you might be able to do it for $90/square but that could be a stretch... although I've seen some people get built for $80 or so with a friend or family member with a GC license.
If you want better finishes and a local builder, I'd plan on $125/sf. Honestly, I wouldn't plan on high end finishes in any home under 2,000sf.
If you do build, consider a floorplan with a 4th bedroom or den. The resale market is typically better for these properties and the cost to build is the same.
Costs can vary depending on whether the lot is cleared or not, the need for fill dirt, public vs. private utilities, etc.
Seth I was thinking $80-$100 would be the range. Good point on the 4th bdrm. All preliminary but land is cleared and besides permits ready to be built. Public water and electric already in neighborhood. Time to start comping my area to see if there's profit to be made!
@Dane Peterson Any progress? I moved to Cape recently and am considering a duplex.
There was progress but not in the way of building. Just closed on the the sale of the vacant land about 2 weeks ago. Put under contract for a month with nothing to lose but listed time. Buyer assigned the contract to a local builder. I'm happy though no more Lee County land owned!
@Dane Peterson You are excited to get rid of the lot? Why so? Is there something about Lee County that I should know about?
@Rich Cee haha no. Just was my highest property taxes out of the ones I owned/picked up from the tax deed auction years ago. Was getting too close to a break-even and I never planned to live in that area. If I were to have any rentals in Lee county it'd be south Ft. Myers from Daniels Pkwy south.
Why that area? Better returns? Nicer schools?
@Seth Nadreau Old thread but with the new price increases in material have you heard or seen owners builders doing it for $100/sqft today? Im hoping to pull off a 1250 sqft build for 100k. Would you think its possible today?
@Rich Cee Unless you're managing the build yourself, it's likely not happening. In my estimation, you'd be looking at about $108/sf for living area and another $40/sf or so for the garage. On top of that, you have well/septic, impact fees, landscaping, driveways, patio/lanai, etc. If you own the land, I'd estimate the cost to build a 1250sf home to be about $135-140,000+ land all in if you have ZERO builder profit.
On the plus side, that same home sells for $195-205K in the NE Cape.
If I were building, I'd try to build at least 1500sf though. Your $/sf decreases as your sf increases. Also, 1450 is a VERY common size in the North Cape. Going smaller could handicap your returns a bit as buyers may buy a resale property just to get a few hundred more square feet.
@Seth Nadreau I was planning on managing it myself and doing a lot of the work except HVAC, Plumbing, Electric. Im surprised that it still may cost that much on my own land!
@Seth Nadreau I just want to clarify. 135k-140k without my land? Would that be subbing it all out or considering me doing doing a lot of interior carpentry roofing myself?
You may be able to do it for less if you're managing it yourself. I've seen some done as low as $94/sf... but that's usually on a larger home (as the $ decreases as the sf increases). Clearly, the more work you can do, the cheaper the build gets. Most of the time, the $/sf numbers also include builder profit, which would be backed out in your case. Just remember to account for all costs going in such as impact fees, well/septic, fill dirt, permits, inspections, concrete work (driveways and walkways), landscaping & sod, irrigation if desired, mechanicals, etc.
If you own the land and are doing much of the work, your numbers don't sound unreasonable at all. Going all in for $100K might be a bit low, but I'd think $125K is attainable.
I'd still recommend running the numbers by someone who's built here as my experience is primarily in appraising new construction and determining a cost based analysis for resale value. My numbers typically always include builder incentive/profit, labor costs and whatnot. That said, most people wouldn't build if they couldn't walk away with at least 20% profit, and that seems MORE than reasonable in your case.
Seth, thank you for the detailed info bud.
Does anyone here have experience building spec homes to sell and any example deals on profits they made?
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