All Forum Posts by: Andrew Taylor

Read the book "Flip" by Rick Villani. It has the answers you’re looking for, and he is based out of Austin, so the numbers are applicable here. You will have to adjust for some inflation and hurricane-related price increases, but overall it’s an outstanding overview of this exact process.

@Nik Moushon You're right - all of my experience (20 years or so) is in residential construction and remodeling. I've worked for builders who were the first boots on the ground in a new development, but I've never worked on the development side of the business.

FWIW, I'm not looking to bid the job based on rules of thumb; I'm looking for 50,000-foot numbers for use in an elevator pitch - the purpose of which is to get invited back to go into greater detail. Your $35-40k per lot information is really what I'm looking for. (My per SF and per LF numbers were for paving - which is per SF - and perimeter fencing and access control for the community - which is per LF, not per house.)

I understand the "call around and ask engineering firms" concept; the problem is that, like you mentioned, they don't really have a lot of time for tire-kickers. I can't put together a realistic cost estimate without a project plan, and I can't create a project plan without a cost estimate. I can spend several thousand dollars having a conceptual site plan drawn up based on potential project sites, but if I then find out those sites require a million dollars of paving and utility infrastructure I'm going to have to go back to square one - and spend another several thousand dollars on a conceptual site plan for a different parcel.

Again - not looking for something to go in a budget spreadsheet. I'm looking for something to go on a slide bullet point.

I'm in the early stages of an investor pitch for a small, niche community in the Houston area. I *know* this is a loaded, hard-to-answer question, but I need some input re: what to estimate for what I would call "lot prep" - fencing, horizontal utilities, paving streets and parking lots, etc. Assuming a flat, cleared, buildable parcel, should I figure a percentage of the lot cost? A per-square-foot number? Per SF for paving, per LF for fencing?

I don't have a site plan, because I don't have a parcel picked out, but I need a rough idea of the costs involved so I can build out a financial model to present with a couple of different parcels as examples.

Thanks in advance for your input.

Haven't moved on it yet. Still in the "cool idea; need money!" phase.

The guys quoting the $65-75/SF numbers also have some oceanfront property in Arizona they'd love to talk to you about. Realistic numbers are going to be north of $100/SF, and likely somewhere between $125-150 if you want anything other than laminate countertops and linoleum flooring.

You and this guy should meet..

https://www.biggerpockets.com/...

You and this guy should meet.

https://www.biggerpockets.com/...

What @Account Closed said. Never identify yourself as the landlord or owner. You're just a guy renting an apartment. I don't know about the $2500 payment; that does seem high, even with the stupid-high property taxes here. I can only reasonably get the monthly nut up to about $1,900 even with taxes, insurance and HOA dues. Maybe you can refi?

What part of town is the property in? Demand for rentals is going up, not down, so it seems like maybe something else is the issue here.

I would for sure think twice about buying something that floods every time it rains (ahem, Meyerland), but stuff that flooded during Harvey ain’t tainted. When it rains 50” over a weekend, stuff is going to flood. 

If you’re not buying anything in the Houston area that’s ever flooded, you’re significantly reducing your pool of potential deals. 

Actually flooded houses that have been remodeled are selling for more than non-flooded houses. They've all been upgraded, vs. older non-flooded houses. If I could remember where I saw that stat I'd link to it.