All Forum Posts by: Nick Harz
Nick Harz has started 3 posts and replied 3 times.
Do I need a permit to do so? And if so, is it ok to do the conversion while waiting for the permit to be approved? It is a simple change and the room already has 2 egress and all I need is a closet.
Post: What is the ROI (gross and net) for STR in OBX?
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I am looking into STR in OBX, what my research shows so far is you get around 10% of house value gross rents annually. So if I buy for $500K, $50K in annual rents.
Sales Price: $500K
Gross ROI: 10% = $50K
PM + Maintenance Expenses: 20% of rents = $10K
Net ROI: $40K
Mortgage, Insurance ($2.2K/month): annually $26400
Down payment: $100K
Closing: $5K
Net profit: $50K - $10K - $26.4K = $13.6K
Net Cash on Cash return: $13600/$105000 = 13%
I am getting 12% on LTR in the same city as I am in. Is STR for this return worth it?
What am I missing here?
I found a good two and a half acres land in Richmond that is R3C zoned. I would like to subdivide it to smaller lots and construct new homes for selling and for me to rent out as well. I am an investor in real estate but have not done new construction before. I wanted to hear from this community what things to consider.
1) Can R3C zoning be subdivided?
2) I read that if I subdivide a land to more than 4, then it has to be a subdivision. What are the cons for that?
3) Should I partner with a developer or builder?
4) What due diligence can I do before buying the land?
5) Which home builders are appropriate for a project like this?
6) What else to consider?