SFH New Construction Advice

[Michael A.]

Experienced spec SFH builders - what is your best advice for someone who wants to build small properties in C neighborhoods that are gentrifying? I am an architect and have always wanted to finance and build my own work. I closed on my first rental in my city recently and have my sights set on this as a next step in my career. Really appreciate the insight.

[Brandon Richey]

@Michael A. New construction spec builder here ! I only build specs, no customs. I would never build in a C neighborhood. If

Your banking on the lot price to make the deal all work it's not a great deal. It's better to pay market price for a lot in an area with a bigger spread than to build a corner cut house in a C area and home you can make a little spread . My advice build in A to B plus areas try to make your house not look like a spec. For example in all my spec I do 8 foot doors. That's a thing I do. TEXAS farmhouse with 8 foot doors, a vaulted ceiling with wrapped beams etc. it's the look that people put in the big expensive homes and I try and give the more moderate homes the same general look. I think specs are an article. If you go out and try to see how cheap you can build I think you will struggle. If you try to build a good house with some extras and some smart engineering to bring cost down and try to make 35k per house you can do it all day. Maybe find an awesome side job. I used to flip a lot and I'm slowly getting out of the flip world and entering just needs build specs along with rentals of course.