All Forum Posts by: Taoli Zhen

Will do! I am awaiting on a couple of items by then I will share the exact numbers here for the BP community!

@Charles Becoat I'm lucky enough that my boss is willing to pull business line of credit on this venture for the construction cost. But it's really tough to justify the potential profit considering the interest rate.

Thank you Juan! I'll definitely get an appraisal to see how I could work around the numbers. Cost Plus 15% GC is really hard to find in our area I've outreach to something like 30+ reputable GCs around the area but no luck.

@Stuart Udis,@Alan Asriants,@Sheryl Sitman, I'm still not sure about how the mentioning works here at BP but please forgive me if you are not mentioned correctly.

Thanks to y'all the Philly people here! These are really good advice. I didn't know the BP community would be this helpful!

Yes I'm seriously concerned about the deal for a while after I have the engineers-tamped plans and trying to pull-off the GC part myself. You guys just confirmed my worry and it's actually helping me to understand the deal I'm getting into A LOT better! I haven't pulled permit yet cause it'd be best to pull it by the to-be GC.

Question: The lot already runs city water and sewer lines but not gas. Would not having a gas line negatively impact the final valuation if I go with electric only for HVAC or is it better to run the gas from the street?

I am considering getting rid of one bedroom to make it a 3b/3.5b but the numbers still don't come close to making this deal make sense. The 3b/3b insight is really helpful regardless of my current situation for rethinking how to approach RE investment here in Philly.

I'll definitely go get a pre-construction appraisal before I invest any more money into this project.

Oh yes, this is in a average school so called “C” or “C+” school district. I think it really keeps the valuation of $650 unachievable. Lesson learned that location is the most important aspect in this case.

Hey BiggerPockets community!

I’m a first-time builder/investor working on a new construction single-family home in the Boothwyn area, part of the greater Philly market. I already own the lot and have stamped plans in hand, but I’m running into some roadblocks and could use advice from the experienced pros here.

The plan is for a ~2,500 sf, 4 bed / 3.5 bath two-level home with an unfinished 850 sf basement and a two-car garage. New builds are rare in this area—most comps are 90s-built flips that have sold for around $480K–$500K in the past year. A nearby newer build (3 bed / 3 bath, under 2,000 sf) is listed at $550K est. on market in July.

Here’s where I’m stuck and could really use some insight:

1. Am I crazy to shoot for a $650K listing price?
This would be the only way I could justify hiring a GC and still come out with even a modest profit (5–10% net). But most GC bids I’ve received fall between $250–$300 per sf, which pushes my build-only cost to $450K–$500K. That makes things extremely tight.

2. Should I alter the plan?
Would reducing the square footage or replacing the basement with a crawl space help me control costs enough to still justify this project? I know losing the basement might impact resale value, which works against the $650K goal.

3. Is GCing it myself the only way to hit a sub-$400K build?
I got a material package quote from 84 Lumber at around $60K, and the foundation alone (not including excavation) is already at $50K–$60K. I don’t have experience running a build, and I work full-time, so GCing myself is intimidating—but maybe necessary? In this case, I aiming for $160/sf for just the build.

4. Should I pivot to a Build-RRR strategy?
If $650K is unrealistic for this neighborhood, I’m considering building and refinancing to hold long-term. My estimated all-in cost would be ~$560K, and rents in the area are about $3,300–$3,500/month. I’d hope for 20% equity post-build after appraisal—would that be a solid play?

I’m also actively looking for a GC who might be open to working within a tighter budget. If you're a GC or know someone who might be interested, I’m happy to share full plans and current quotes. I have bids on some major items, but still need stormwater and excavation quotes.

Would love to hear from others who have built in this price range or market—do the numbers make sense? Is there a creative way to make this viable, or should I cut my losses and sell the lot with plans?

Thanks in advance for the advice—really appreciate this community!

Hey Alan! I can't agree more, the market in the suburbs Philly is insane. I've been renting a 1b1b at Berwyn right next to KOP for $2150/mo for the past year. I can't stand the rent no more and bought a TH from Lennar in Bridgeport. At the meanwhile am thinking about taking out HELOC for BRRRR. So please let me know if you have those "wholesale" BRRRR opportunities am happy to go through them to see if we can leverage to take on a assignment in a good neighbourhood.

I have a lot going on now even taking on line of credit from my boss (corporate line) to do a new SFH construction in Upper Chichester. While zoning isn't allowed for multi-family there so SFH is the only option. But finding GC for building at a reasonable price/sf is super tough here since most builders are doing those 1M+ custom homes no builder would want to take on entry level home projects. Please hit me up if you have reliable GCs who are willing to take on entry level projects. By any chance you have any ideas on what the potential rent could be for 4b/3b in that area.

On top of all this, my boss is looking for those first level commercial & upper level residential properties. Let me know also if you have any off MLS opportunities!

Thanks a lot.