New homes in low-income neighborhoods

[Jason Holden]

Hypothetical exercise:

You've been tasked with constructing new homes in an area where the media income is $25k/year.

20% of the market will pay rents of $470/month. 20% will pay $870/mo. 60% will pay $670/mo.

4,000 to 6,000 sq ft lots cost $4,500

Land development costs $1k.

In addition to rent, you plan to install and own solar panels on tenants' roofs. The tenant will pay you for the electricity they use, you'll pay what the energy company bills, and you'll bank the $60/mo difference. Assume after tax credits and incentives, solar panels and installation cost $4k per home, all-in.

What's the break-even point? Putting a home on the land would need to cost ~$30k, is that correct? How can this be done - shipping containers? Modular?