So I’m in the process of finding my first deal but do not actually have one under the belt.
I was gifted a land in Timberwood park in San Antonio from my gma. If I sell the land out right I can get anywhere from 40-70k if I spec build and sell the house I could possibly make more. The houses in the area go for 300-500k I plan to use the land as a down payment (since I would own it outright) and then build and sell. Am I in over my head with this or should I go for it? Are there any spec building books you recommend?
@Jesse Ramirez Timberwood Park is definitely a good neighborhood. I would start by finding strong comps in the area to determine a conservative ARV since $300-500k is a wide range. Be sure to pay attention to days on market, interior finishes, and extra amenities like pools. Next, I would get some inital contractor quotes on how much a new build will cost just for inital calculations. Once you have a good estimate on ARV, construction costs, holding costs, etc., then you'll have a more clear picture on what to do with the land. I would suggest to take into consideration ROI and annualized return. 6+ months of work for an additional $20k in profit might not be worth it. Personally, I think it's a big project for a first investment but it would definitely be a great learning experience if the numbers work. Either way, it's definitely a great opportunity!
@Jason Lee I’ve looked at similar land sizes in my area and it’s crazy to see the fluctuation in price. Usually pools are what put the bigger houses near the top of the tier.
@Jesse Ramirez I can believe it! I'm sure it's because things like sq ft, finishes, etc. are all over the place which is a big reason why spec builds can be challenging.