Building Homes On Vacant Lots
Hi there,
I would like to be able to start building homes on vacant lots and use the home as rentals. I wanted to know if anyone has any experience/success with building a single family home from a vacant lot and selling it for profit.
Also, any names of building companies in Lakeland, FL area that could assist with building the home would be helpful.
Any and all responses or thoughts on this are very much welcomed!
Most Popular Reply
@alexis monroe as @Charles Conroy states there are a lot of factors but the process can work well. I am partnered with a group in Dallas / FW area and they have bought up a bunch of lots a while back. they were then waiting for market conditions to move and also some capital. i joined to aid in capital and some other skills. we are now moving forward quite quickly but as charles states, it does require some cash to get moving. we have been building and either renting or selling. rentals around the 20% coc or we are seeing a 30% roi if we sell give or take. the great thing about the new builds is most all "issues" are covered by some sort of warranty so the hold for maintenance / repairs is minimal.
once we have a few rented out we were able to secure a blanket loan to cash out three properties (portfolio loan). we also secured a build loan on the side as well (more of a hard money) to allow us to start building 2-4 at a time. things are picking up considerably now.
we did a ton homework on understanding zoning etc as well as future plans of the city and where growth is anticipated etc.
anyway. its a great idea to do but does take a bit more capital upfront.
Bo