Rental Property Investor · Cedar Hill, TX · Member since 2016 · 4 posts · 1 vote
I am a newbie trying to get my first break and I have an opportunity that I do not know how to approach. I have two lots that my cousins and I own. One lot has my grandmothers house on it that is not salvagable and the other is just land. What I want to do is tear down the current property and rebuild a multi-family there, a 3-4 unit.
Any advice on this would be helpful. I need guidance on the best way to handle this. How would I know if my numbers are right? Can someone provide me with a website or formula to help? What would be the best way to fund this project with no money? If I went with a hard lender, how would it work? Is a 203k a good option for this?
North of Houston · Member since 2018 · 349 posts · 181 votes
7y
A builder will need about $130 to $140 a foot to build you something with all tile floors, custom cabinets, granite counters etc
yes tear down that old stuff, the benefit about tearing down, is the out come and more certainty of cost. Tearing down is cheaper than what people think, Pretty sure your cost is are around $5-6,000 (used to cost me about $3500 in the 1990's)
Small banks work with the kind of small Builders you need, find a local community bank, gets some names from them. Never give a down payment (may be a just small commencement fee if the builder signs a triparty agreement with the bank) the builder will get draws from you and the bank together.
Your wiser if do not go forward with anything un-selected, paint color everything. No special ordered materials. THEN After so many days, make the builder pay your carrying cost (since he is the one holding things up, at that point, you did your duty on the front end.) Let YOUR engineer inspect the slab and the frame. Get test on the concrete (let all these things be known up front)