I think I have a good deal in Salt Lake

[Lehi VItor]

I recently bought a house in the Sugar House area and a developer (I'm guessing) build 4 townhouses in the lot next door. Last year all 4 were sold for around $550K. I'm wondering how I do that myself.

The property is clearly zoned for townhomes and is in a great location. 

So considering...

I owe $380K on the property. 

I think it would cost about $250K - $300K per unit (this needs to be varified). Total $1,580,000 (assuming $300k per unit). I think it would take 12 mth to complete.

If units all sell for $550k Total gross = $2,200,000

Net = $620K this would be about 39% return.

I'm my head this is a good deal but I have no idea how to structure this. The math makes sense but I don't know what I don't know. I've been doing this mental exercise for a while hoping to get some thoughts on this.

Thank you all.

[Genny Li]

If you haven't built before, this would be a trial by fire, and you could lose your shirt. Everything costs more for a single person than a developer, and you don't know the good new construction GCs and tradesmen.  On a scale of 1-10 difficulty, this is a 10.  Much harder than rehabbing and flipping.