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?
Realtor · Orlando, FL · Member since 2018 · 56 posts · 28 votes
8y
@Patrick Philip
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?
Realtor · Orlando, FL · Member since 2018 · 56 posts · 28 votes
8y
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.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
8y
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.
Property Manager · Syracuse, NY · Member since 2016 · 601 posts · 384 votes
8y
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.
Real Estate Investor · Miami, FL · Member since 2013 · 122 posts · 51 votes
8y
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?