Building new homes? - I Need Advice - May take the leap

[Edward Briley]

I have flipped a few homes now, more than I will admit, and I have come to the conclusion, that using my contractors that it may be less expensive to build new, rather than flip in some cases.

There are many lots, not only here, but across the nation, mainly in low income neighborhoods, but many in decent neighborhoods that are 25 foot wide. I am thinking about contacting an architect to design some homes for me that I can take advantage of these properties. These homes would be from studio's with one bath to 3 or maybe even 4 bedroom homes with 1 1/2 to two baths.

My figuring on construction cost I am seeing about $30,000 to $60,000 on building these homes, plus the cost of the dirt. I should be able to sell them from $60,000 to $120,000 easily. What kind of advice can someone offer?  Would you take the leap?

[Colin L.]

$30k-60k for construction costs seems crazy low.  most builders i see on bp quote around $100-120 SF.