I just purchased 7 lots...what next?!?

Question

Hi all,

I have been investing in Single Family homes for just over a year now and it’s been going well. I just closed on 7 lots of land in Corpus Christi, Texas.

I am thinking of building 7 single family homes and renting them...does anyone have any experience with that process?

I have been looking into https://houseplans.bhg.com/ to buy plans and have a contractor build them?

Is it generally cheaper to build 1 story or 2 story?

What is the average cost per sqft for a 1000-1200 sqft basic rental?

I am also very open to reading books, watching educational videos, any advice, hints and tips or direction is much appreciated.

Cheers

Andy

Clint G. · Answer

@Andrew Cairns

I've explored building here as well. From what another builder told me you can expect anywhere from from $90-120 a square foot to build. You'll be on the lower end if you just want basic homes for rentals.

You'll want to consider what the rents are for the type of home you're building as well. That will help you determine how much you should spend on building them.

Where in Corpus are the lots?

Carter Anderson · Answer

Hey Andrew, I am a REALTOR in the Corpus Christi area and work for builders. I could connect you with some of them unless you were planning on doing the builds yourself? The Flour Bluff area is a good area and Corpus is expanding at a good rate. Let me know if there's anything I can do for you!

Stephen Glover · Answer

@Taylor L. see chain above, specifically @Luke Sanderson's mention.

Luke Sanderson · Answer

I'm unfamiliar with your market, but generally when I have rented or owned, a 2 story was preferable. As an owner of an already built structure, it was preferable since the cost of replacing the roof is going to less. It let me have a larger sq ft in a smaller footprint and I had bedrooms over the garage. Another thing to consider is that yards are an attractive feature, and I'd be willing to pay more for a place with a larger yard (I have dogs and enjoy spending time outside).

I think you have a great plan, hope it works out for you! One idea I have heard to maximize you usage before you build is use the lots as short term storage for boats, RVs, or containers. You can rent containers and then rent those out like a storage facility. Since you aren't building a structure, you don't have to change the zoning (from what the podcast I heard this on was saying). If you are developing them 1 by 1, it might be a viable option to generate cash flow while you build.

Just my 2 cents.

Luke Sanderson · Answer

Andy,

I want to say it was Passive Income Strategies for Busy Professionals. This might have been the episode, but I can't remember specifically... https://www.passivewealthstrategy.com/self-storage-investing-mastery-with-scott-lewis/The guy that runs the podcast/ website is on BP- Taylor L. from Richmond, VA. He can probably help you out with the specific detail of the podcast, or put you in touch with someone smart on it. He does syndication and storage facility deals. Much smarter than I am.

Luke

Andrew Cairns · Answer

@Taylor L.

Thanks Taylor

I’ll check it out and see if that’s a viable option, but I’ll definitely shoot him an email.

Cheers

Andy

Jay Hinrichs · Answer

2 story cheaper to build than 1.  less concrete less roof .

Taylor L. · Answer

@Stephen Glover @Luke Sanderson thanks for the mentions, gents! I'm glad folks are getting good information out of the show.

@Andrew Cairns I invest with Spartan Investment Group, and they do indeed do Boat and RV storage properties in DFW and other markets. You'd want to contact your municipality to see what you can do about putting up storage on your property. If you reach out to Spartan they might be willing to give you a brief overview of their model.

Scott did give his email address on the show (and it's on the page you shared), shoot him an email!

Andrew Cairns · Answer

@Clint G. Hi Clint

They are on Flour Bluff, Valerie Street. I see your bases out of Corpus, can we connect and chat?

Cheers

Andy

Chase Cline · Answer

Not trying to be a dick, but why would you buy these lots without knowing the answers to these questions?  Seems like those are the very basic "must know the answers to" questions you'd have to have BEFORE buying... unless you have a backup plan.

I own a few rentals on the island there and Flour Bluff isn't really the best area unless you are out on the west end.

I just purchased 7 lots...what next?!?

Most Popular Reply