Building from Scratch – My Pool House Disaster & What’s Your Lesson?

[Mike Rutherford]

I’ve been in the real estate game for a while, and as the CFO of [Your Company Name], I usually stick to what we know best: developing and managing Class B multifamily projects—20-50 unit properties in rural southeast US, like Georgia or Alabama. But a while back, we veered off-script, and hoo boy, did we learn a lesson. I figured I’d share the mess and see what you all have picked up from your own building adventures.

So, picture this: a good friend begged us to build them a custom pool house—high-end, fancy, totally outside our Class B wheelhouse. We’re used to practical, bread-and-butter multifamily, not luxury one-offs, but we said yes to help out. Disaster from day one. The owners were pushy—change order after change order, from “move the hot tub” to “add a skylight”—and we didn’t push back hard enough. Our contractor wasn’t prepped for the bespoke chaos, costs ballooned 20% over budget, and the timeline stretched from three months to eight. By the end, we barely broke even, and the friendship? Let’s just say it’s “on pause.” Lesson learned: stick to your lane—know your expertise and don’t dabble where you don’t shine, especially with demanding clients.

Rural Class B multifamily is our sweet spot now—lower stakes, steady returns, no custom skylights in sight. But that pool house fiasco still haunts me. So, I’ve got to ask: For those who’ve built from scratch—multifamily, flips, whatever—what’s one mistake you’d never repeat? Did you overreach on a project, get burned by a client, or misjudge a contractor? Drop your stories below—I’m all ears for the wisdom we can share.

Can’t wait to hear your takes—let’s keep learning together!