I have a property in a beach community in Massachusetts which I want to move on. The price is 70k, and its in really bad shape. Houses in the area sell for 400k.
I think the best course is to level the structure down to the slab. I have to keep the slab in place because the town doesn't allow this type of use in this area anymore as new construction. But if the slab stays I can rebuild.
I've been quoted 8k to have the home (its really just a shell) totally demoed and all the debris hauled out of my life.
Im wondering if I should just demo and sell the lot, or if I should try to partner with a contractor who will build a home which we will sell then spilt the profits with him.
What are you goals? Where is your comfort and success? It really comes down to where do you see yourself the most successful.
@Bryan Van Lenten there are several questions that must be answered to give you a correct response.
1. What are comparable lots selling for?
2. What is cost per sqft to build.
3. What is the average price per sqft for new homes going for in the area?
Also I do a lot of tear downs and hire a GC never do a profit share pay the GC a flat rate and you pay all the subs and buy all material will work out a lot better for you! I pay 25k per house just to mange. 12500 rough in 12500 upon co.
I'll give you an example here I can by a tear down for 250k rebuild for 250k and sell for 750k
So you get 250-250-750. Obviously the lower the land / tear down price the better.
So in you case if resale is 400k ---80k lot and tear down---you could really not be in the house for than 175k construction to make the deal work. Hope that helps good luck!
As Joshua indicated, you need to provide a LOT more data for anyone here to recommend what you should be doing with this property...
If you can't build slabs, maybe they are undesirable. Maybe you should just build a 'regular' new home to compete with the new home market.
Phil Z., TOP END Properties | 203‑936‑7776 | http://www.rehabhousesinct.com
Thanks all, some really good thoughts on here.
Can anyone help me with how to determine cost / sf to build in an area? In this case the south shore of Massachusetts.
Or, perhaps there is a better location on this forum to place such a question?
New guy trying to get a feel for things! Thanks!
@Bryan Van Lenten I am not sure if there are any actual builders in your area on BP maybe there are I don't know. But find some local builders who have experience and tell them you are "looking to build spec" trying to do some DD on a potential upcoming project. Get some numbers that way. They can range greatly depending on the geographic location, soils, finishes, wind, just some friendly advice if you are not fimiliar with construction/building and you don't have a builder you can truly trust I might pass until you get more experience. Please don't take this the wrong way building new construction will take 6-9months from start to finish so if you do not have everything lined correctly there is a good chance of no or a slim profit margin. I encourage you to get out and take risk in development and investing but make them calculated risks. Good luck.
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