I talked to a contractor the other day, he told me he usually builds new houses for $111/sq. ft. + about $22,000 + permit, impact, and architecture fees. He says his price might approach $200/sq. ft. for higher end homes. This is near Orlando, FL.
These prices, coupled with the fact that he quoted a 5-month timeframe to build, makes this a far less ROI than residential rehabs.
What has been your experience with new residential construction costs? How do they compare to commercial?
I'd love to have his info. Even the production Builders are 6 to 8 months. 111 psf? Wow, wouldn't have thought that possible. I'm guessing with everything it's probably closer to 120-130 psf which is a little more common for quick base build.
Sounds like it's definitely worth pursuing if you can find a lot or a tear down that makes sense in an area that will support it.
Are you thinking of using it for long term rental or flip?
Updated 3 months ago
on another note, I see some STR new construction on 4k+ sf homes around $118 psf (and almost completed). Mattamy-Solara, for example. They also offer signif comm which agents (like myself) are often happy to share as buyer rebate. Have you considered STR in Kissimmee area near Disney? Avg 6-7% noi but plenty of investors are getting 10% doing it the right way.
In WNY- $125-$180 sq. 6-8 months
btw @Patrick Philip Don't know your goal/range, but I'm waiting for a 2-3 ac lakefront lot on Orange Ave in Winter Springs to list this spring/summer. Anticipate mid-high $300 range. Has a 3 br brick rancher and pool but could tear down and build something bigger. There are a number of 5k+ sf homes on that road valued $700-over $1m.
Depends on a lot of things. I've built for $65/sf and I've helped a friend build for $320/sf. And I'm sure you can find higher, lower and everything in between.
You need to be more specific with details.
The costs come with the finishes. Eileen is close, but the sky is the limit. You can build a house that looks great using Home Depot project source, lower middle grade material for $130/sq/ft.
$90 /sf around here, without a gc markup
Then stick to rehabs. In my opinion it all depends on your opinion and time you look at the start and end of it
I have my eye on a lot that is selling for 90K (2200 sqft), properties in this area are being sold for around 420K. If I build at $100 sqft ( a guestimate) then my total cost will 220K+90K = $310K , let's say $350K with surprises. I can then make $70K after selling it. Are these rough numbers realistic?
@Patrick Philip A lot of variables there, not to mention it varies a lot by area.
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