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All Forum Posts by: Ronald Starusnak

Ronald Starusnak has started 28 posts and replied 486 times.

Post: Buying and gentrifying a neighborhood

Ronald StarusnakPosted
  • Property Manager
  • Syracuse, NY
  • Posts 601
  • Votes 384
Originally posted by @Robin Casper:

@Mike Alt Currently I invest solely in Auburn/ Skaneateles just because that’s where I grew up and started out and that’s where my management and contractor team is. I plan to move into Syracuse in 2 years when I’m done working overseas. When I’m back local I plan on doing exactly what you’re thinking in Syracuse and would love to combine forces with other investors. 

 Hey Mike, if you see any build-able lots over in Skaneatelesfor sale, feel free to send them my way. :] 

Post: Real Estate Developers & Custom Homes?

Ronald StarusnakPosted
  • Property Manager
  • Syracuse, NY
  • Posts 601
  • Votes 384

http://www.oregonfirst.com/

Post: Real Estate Developers & Custom Homes?

Ronald StarusnakPosted
  • Property Manager
  • Syracuse, NY
  • Posts 601
  • Votes 384
Originally posted by @Jay Hinrichs:

PS its rare to build basements except in certain markets were lot coverage and solar set backs are such that you need to go down to get sq ft..  and you have a lots of rock and volcanic rock here.. 

Also with Bend you have to build for snow loads.. which drive prices up.. plus to be relevant in the market place U need to put Bend style in the houses etc..  

I would pop on Hayden homes website they are the lower end production builder in Central Oregon and Washington. I would look at what they do.

Along with Adair homes.. 

As @Karen Margrave stated the developers license catch's people off guard as I don't think any other state has that layer of licensing..  I got nailed 3 times.. one for 5k and it could have been 100k.. and two little 1k ones.. 

Sub pricing has steadily gone up.. when i started building in Portland area in 2012 I was paying 3.50 a foot to frame included nails and setting windows.. now we are at 7..  Lumber packs have gone up 50% in the last 18 months a 2k sq ft lumber pack can be 30k easy.. when it was 20k a year or so ago. YOu will need to get your electricians license yourself and or have one as an employee.. same with plumbing. 

Market has cooled in the Northwest  thats a fact.. still a shortage of housing in certain areas.. keep in mind Bend is not a major employment center and a lot of what gets sold is vacation seconds homes retirement homes.  You cant compare Bend to the portland area.  

YOu may want to look at Kalamath Falls there are cheap lots there.. but thin market.. my bank owns a slug of them they foreclosed on in 2010.. still have them.

Thanks Jay. We are certainly going to move closer to the Portland area instead of Bend as initially planned. We are still in the early phases of planning the transition. We build for the biggest snow load in the US here in Upstate NY already. We get the highest annual snow fall and have the highest requirement for insulation R rating. I am going to look into the problems you guys have brought up tomorrow morning. It appears the licensing requirements to become a licensed electrician and plumber are pretty lenient with only having to pass a written test. To acquire a GC license in NY you must know all codes, including electrical and plumbing. Shouldn't be a large hurdle. 

With the investments I hold in NY and we will be leaving our company operating in NY as well, we will have some cushion to push us through should we run into some issues. Thanks for taking the time to read and provide input guys. 

Post: Real Estate Developers & Custom Homes?

Ronald StarusnakPosted
  • Property Manager
  • Syracuse, NY
  • Posts 601
  • Votes 384
Originally posted by @Account Closed:

@Ronald Starusnak I’m not here to discourage you but Oregon is a lot different than New York.  We are also up to peak prices currently.  No one is coming here building and becoming wealthy and there is already what I think is an oversaturation of homes under construction.  Research the bell curves in particular in Bend.  You might be surprised.  

 Karen, I think the exact opposite is happening. There is a major housing shortage in Oregon. That's why the prices are so high. Supply and demand. 

Post: Real Estate Developers & Custom Homes?

Ronald StarusnakPosted
  • Property Manager
  • Syracuse, NY
  • Posts 601
  • Votes 384

Your electrical plumbing and HVAC are double what my costs are here just to start, same with the excavation. That looks like it could be a big cost difference right there. Have you considered having your in-house guys doing all the rough in and just having the licensed sign off on the work? Here in some cities we have to have the plumber pull the permit, they let us do the work, then they inspect it and sign off on it and we also pay them for each inspection and correct it as we go. We can plumb a hole house in 2-3 days with 2 guys if we're using pex. That's about $2,400 in labor on the high end and then our materials will be under 3k. Few rolls of pex, water heater, shut offs. 

Post: Real Estate Developers & Custom Homes?

Ronald StarusnakPosted
  • Property Manager
  • Syracuse, NY
  • Posts 601
  • Votes 384
Originally posted by @Nik Moushon:
Originally posted by @Ronald Starusnak:

Nik, we build the houses ourselves.. Don't know where all of the confusion is coming from. There's no way $150/sqft is your builders cost to build. If you are hiring a builder then maybe they are charging you $150 a ft. If they're claiming the cost to build is $150 a ft then you need to look and see if they have a profit in there somewhere. If they don't have profit in there then they're not really builders and they're really just paper pushers that hire sub contractors to do all of the work. 

Lumber availability, Shingle, stone, insulation, these are materials shipped in from other countries and states and the costs between states aren't going to be that significant especially when dealing with national suppliers. Not to mention, the materials in NY are razed at nearly 10% and from my understanding Or has no sales tax? That sounds like a savings right there as well.

Getting back to your point, $150 a ft is the national average to build a house WHEN hired specifically by a homeowner to build them a house. The builders cost is not $150. Our cost in materials and labor is lower than $90 even, here in NY we are building at $72 a ft and charging $120 to build it and we profit about $90-$100k on an average sized home. Check the spreadsheet I linked to see our coats vs profit. 

 I'm not sure if thats with profit or not. New houses, similar to what you have stated, are selling for about $200-220/sf here. Our market prices are a little lower than Bends but not much. I think the median was $420k-ish. So even if you do a 50% profit thats still WAY above your 90/sf.

Don't be so easy to shrug off material cost differences either. Prices here are higher, both because of taxes and tariffs as well as demand. If you ship them direct from other countries are states you still have the cost of shipping which makes any savings marginal and also longer lead times.  

I'm not here to try and argue your numbers are wrong. You're experienced enough to know how to run those. All I'm suggesting is you really double check your numbers bc they seem low to me. You could be right too. But just throwing some extra caution your way is all. And if you do get those build in th 90/sf range I will be trying to convince you to come up my way lol. We can  team up to do some builds. The housing market in my area is hot and in high demand. 

 I'll look into it, I think the $150 sq/ft is including profit. That's almost exactly the national retail average cost to build a mid-range house. I analyze and perhaps over analyze everything that I do. I am a nerd first and an investor and contractors 2nd! haha, I just looked up the pricing because you guys brought it up. Check out contractortalk.com to see what other builders are building for. We're talking $60-$65 a foot to build a basic spec house without any fancy finishes. This is about what we're seeing here. I simply can't imagine costs more than doubling because the housing market isn't double there, sure the prices are higher but they're certainly not double unless we're considering costs that I am not yet aware of. 

https://www.contractortalk.com/f4/average-how-much-do-builders-charge-build-house-10454/

Post: Real Estate Developers & Custom Homes?

Ronald StarusnakPosted
  • Property Manager
  • Syracuse, NY
  • Posts 601
  • Votes 384
Originally posted by @Tim Johnson:

I would get some prices from the trades, electric, plumbing, hvac.  In my area, 3 hrs north, the guys charge 50% more so your cost per sqft might jump up big time.  I would price out an entire house, and do some serious home work before you jump ship and move.

I can build for about 110sqft within 1 hr of my home base, 4 hrs north I can't build for less than 175sqft. Learned my less the hard way on that one.

 What are the largest cost differences that you've noticed? We're not heading out there until December or so, the time in between is to be spent on research and website development. I've already started our website and SEO to rank on some popular search terms. 

Post: Real Estate Developers & Custom Homes?

Ronald StarusnakPosted
  • Property Manager
  • Syracuse, NY
  • Posts 601
  • Votes 384
Originally posted by @Michael Evans:

WOW, $150 ft seems really low! In my market SoCal, as a GC I'm quoting $300-350 ft but that would include a pool and landscaping.

There are also the cost plans, permits, developer fees, sewer and water connection fees that add another 10-15%

 The guy we build for $120 wants us to build for $90 a ft here and they're getting it done with pretty decent properties as well. Pretty crazy.

Post: Real Estate Developers & Custom Homes?

Ronald StarusnakPosted
  • Property Manager
  • Syracuse, NY
  • Posts 601
  • Votes 384

Nik, we build the houses ourselves.. Don't know where all of the confusion is coming from. There's no way $150/sqft is your builders cost to build. If you are hiring a builder then maybe they are charging you $150 a ft. If they're claiming the cost to build is $150 a ft then you need to look and see if they have a profit in there somewhere. If they don't have profit in there then they're not really builders and they're really just paper pushers that hire sub contractors to do all of the work. 

Lumber availability, Shingle, stone, insulation, these are materials shipped in from other countries and states and the costs between states aren't going to be that significant especially when dealing with national suppliers. Not to mention, the materials in NY are razed at nearly 10% and from my understanding Or has no sales tax? That sounds like a savings right there as well.

Getting back to your point, $150 a ft is the national average to build a house WHEN hired specifically by a homeowner to build them a house. The builders cost is not $150. Our cost in materials and labor is lower than $90 even, here in NY we are building at $72 a ft and charging $120 to build it and we profit about $90-$100k on an average sized home. Check the spreadsheet I linked to see our coats vs profit. 

Post: Real Estate Developers & Custom Homes?

Ronald StarusnakPosted
  • Property Manager
  • Syracuse, NY
  • Posts 601
  • Votes 384

Not to mention, it may be difficult carting that equipment across the country.