New Residential Construction during COVID

[Johanna Rodriguez]

Hello all!

My name is Johanna and I am a new investor in Dallas, TX. My husband and I are currently under contract for a lot that we plan to build a single family home on. Originally our plan was to flip but after running numbers with our GC and his extensive experience in new development we decided to go this route.

When we initially began planning and offered on the lot, states were beginning to reopen and it seemed the “new normal” would bring us somewhat closer to pre-covid. Today cases continue to rise, hospitals appears to be overwhelmed, small businesses appear to be closing left and right and we are having second thoughts as to whether we should continue or back out.

I have been researching and running numbers for several months now, funding is in place and we are ready to roll but am unsure if I am falling into analysis paralysis x10 with the current situation or if I am being realistic in thinking this could extend so far out that by the time we are complete with construction the crisis would have impacted real estate so drastically that our estimates will be irrelevant (considering we already run conservative estimates). Basically I am stuck between sticking through when investors are backing out left and right due to fear or following in their footsteps?