Any good books / reading info on tear downs and building single family homes from scratch?

Question

Hello

I've seen many books on buy and hold, buy and rehab.  When I search for building a new home I get a lot of books on how to physically build a new home (framing, electrical etc).  Not exactly what I'm looking for.

Can anyone recommend any good reading material on how to buy an old home for the purpose of demolishing it and building a new one from scratch?  (ie hiring a builder to do the work).

Thanks

Miz

J Scott · Answer

Hey Manish,

I'm working on a book...but it's not finished just yet...stay tuned!  :-)

Happy to try to answer any specific questions you might have...

Karen Margrave · Answer

@Manish A.

You've already been given some good starting points by other posters. I'd just add that it's always a balancing act. Here are a few things to consider

When looking at lots:

• What is the cost of the lot?
• How much space can you build on the lot? 
• Is the lot flat and usable? (no drainage issues, etc.)  If not, what are the costs going to be to get it to being buildable? 
• How much building can you put on the lot?
• Are there utilities available to hook up to that are close by? 
• What is the typical size home in the neighborhood? 
• Are there other new homes nearby? If so, are they selling? What are their sizes, finishes, etc., and price? 
• If the lot is in an older established neighborhood with smaller homes, etc. is there a demand for larger new homes?

When looking at new construction vs. fix/flip:

• What is the local market like? (Is it a tight market with few listings, or is there an abundance of homes for sale? 
• What is the rental market like? 
• Are rentals commanding top dollar or priced low?

These are just a few of the things we look at when making a decision on whether or not to build in an area. Good luck!

Mark Sidorczuk · Answer

@ Manish The best book out there is experience. All architects, engineers, construction managers go to college for 4-5 years and are not able to run a project when they get out of school! It takes a couple years of mentoring to understand the process. I would recommend shadowing a G.C. or architect from the start to finish of a project. I work primary in large scale commercial so it takes a lot longer. My last project that I just finished up in Baltimore County took 8 years to finish because of the scale and complexity of the project. A SFH should be a quicker learning process (about a year).

I also agree J Scott's blog is a good place to start because it explains all the steps. One of the hardest things for a new architect, engineer, builder, etc.... is to understand the process (or steps). You really need to think ahead so that you have all your trades lined up. If not it will take you longer to build a project. For example, you won't have your concrete, cabinets, tile, etc ordered in time to be installed. Or one trade will be waiting around for the other trade to finish.  A lot of people think you can just run down to Home Depot for all your materials and get them in one day. Many materials are manufactured on demand. So you should spec products that have a quick led time (ship time).

To respond to your three questions:

1Q. When you say configuration of lot - can you clarify what configurations do you consider advantageous?

1A. Configuration is how the house will fit on the site. I.E. the placement of the garage, entry, roof line, etc. I would recommend driving around the neighborhood and take photos of new homes you like with a similar lot.  You'll notice a couple patterns of the site layouts. Also a architect will give you a couple site options when laying out the house. I've seen some really bad site configurations because the developer does not place the home to fit a site.

2Q. How does one determine the finish level of sold homes - is this info available on the MLS?

2A. You'll need to look at your competition. You can look at photos on the MLS. Or better yet tour spec homes in your area. You'll see they all look the same! lol :) Tan siding, small piece of stone or brick and a two car garage that takes over the design of the house. :)

3Q.  Got it.  Hypothetically if we were to have someone do the legwork for us (zoning, set back info, etc), who would recommend do it? (agent, architect, civil engineer, etc).  Or any/all of the above?

3A. All of the zoning, setback, requirements, etc.. you can get from a architect or civil engineer. But you can side track the architect or civil engineer by hiring a survey company directly and have this shown on the survey plot. This is what a architect or civil engineer will do so you can cut out the middle man. As for the building code requirements you'll need a licensed architect or engineer to stamp the dwgs. I would recommend for your first spec home that you work with a modular builder. They will manage a lot of the process and make it easier to manage. You'll pay a little more, but it will reduce your risk significantly.

Good luck with your project! Feel free to IM me or call me if you have any more questions.

Ned Carey · Answer

BP Member @J  Scott did this and often writes about his experiences. Check out his blog (123flip.com I believe) or search here on BP to see if he wrote about it

Account Closed · Answer

@Manish A. I can tell you the hardest part is traversing the bureaucracy...   :)

J Scott · Answer

Unfortunately, I have another book I'm working on before those, and I haven't been making as much progress on the other book as I was hoping anyway...

While Chris' point above is reasonable (a book won't teach you everything you need to know), the general methodology can be learned from reading about new construction projects.  Take a look at the New Construction Diary that I put together a couple years ago about my first flip (with Todd Whiddon) and feel free to take a look at www.TheScottPad.com for another new construction case study.

Manish A. · Answer

@J  Scott

What's the status on your book?

Miz

Karen Margrave · Answer

@Manish A.  Don't assume. There are many agents that just take listings and put them on MLS and do nothing else. There are deals that slip by and make it to MLS.

Manish A. · Answer

@Karen Margrave

@Mark Sidorczuk

@J  Scott

Thanks for all your comments, they are very insightful!

One more thought - is there anything wrong with the following logic?

In a hot neighborhood, isn't it safe to assume that the listing agent would have presented any new home for sale to all the builders before listing the home on MLS, so he/she could 1) sell quickly 2) avoid having to split the commission with the buyers agent?

If so, then one would conclude any house that actually hits MLS has already been declined buy local builders, therefore any listing on MLS is probably not a good buy as a tear down?

Miz

Any good books / reading info on tear downs and building single family homes from scratch?

Most Popular Reply