Sell land or build new construction in Poinciana?

Sell land or build new construction in Poinciana?

Member since 2019 路 19 posts 路 7 votes

Hi BP - I currently live in Chicago and am relatively new to investing in RE (one flip, one MF - both in Chicago). My mom bought a plot of land in Poinciana, FL years ago and has been sitting on it. I keep getting offers on the place but I'm trying to convince my her the best play would be to build new constructions ourselves with the help of a full service GC. A quick comp analysis looks like I should be able to fetch $300k+ for a new build (4br/2ba). My question is in regard to costs. Looking online, I see anywhere from $60/sf to $200/sf for new construction...what can I realistically expect for this area? In Poinciana, specifically, does anyone have prior knowledge on what I can expect to spend if I hire a full service GC to get this done? Can I build a ground up 4br/2ba in the $100k - $150k range? What is the complete timeframe for this? Things seem to be backed up everywhere I look. I've also never done a ground up development. What other items (I'm sure there's a million) should I also take into consideration? Any guidance helps.

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  • Developer 路 Boulder, CO 路 Member since 2018 路 530 posts 路 365 votes
    4y

    @Jay Miller Jay send me a DM and I鈥檒l send an excel spreadsheet to you that calculates the hard cost based on local comps.

    The worksheet runs a residual analysis by deducting everything from the sales price for comparable new homes in your market area.

  • Wholesaler 路 Member since 2022 路 3 posts 路 1 vote
    4y

    Whats up, Jay! 

    Glad you posted. I wholesale land in Poinciana! So I may have called you 馃ぃ 


    Im not an expert on developing, but I do have some partners who develop. A few things Tha I鈥檝e learned when it comes to building is to ensure your land has utilities on it. I have found that many land owners never build because they realize that they never had utilities. So ensure that you have utilities on it is my biggest piece of advice for you! 

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