Follow my Nashville new construction project

[Roberto Gutierrez]

Hey BP!

I am a Nashville native currently involved in a number of development projects locally. I am trying to be more active on the forums, so I’m going to document a development project from start to finish. I plan on updating this thread weekly and I hope this gives the other members a look into Nashville as well as a feel for what goes into a small development project. I’m currently 2 weeks into the project, so I will get the thread caught up and answer any questions along the way. Let’s get started!

We will be building two homes on a lot where one home existed previously. This is known in Nashville as an HPR (Horizontal Property Regime).

Lot Details

• Size - 50x150 lot
• Zoning - R6 - this allows one or two dwellings with at least a 6000 SF parcel. The houses can be side by side or if your lot is deep enough the homes can be staggered front to back.
• Setbacks - 20’ rear, 5’ side, 37.5’ front. The homes also must be 6’ apart at a minimum. This means that we can go 17’ wide if they are detached side by side, or stagger and lose the road frontage for one home while gaining a more favorable design in my opinion.

Design Details

• Size - ~1740 SF
• 3 beds, 2.5 baths
• 2 car garageport
• Design will have some contemporary and farmhouse aspects
• Concrete slab foundation with polished/stained concrete floors on 1st level
• Hardwoods on 2nd floor
• Tile in wet areas

Financials – Will post a picture of my model, but here is a quick overview. If anyone wants to see the budget to breakdown the build cost I will post it as well. Let me know

• Purchase price - $160,000
• Construction cost per home - $175,000 (about $100/SF is the goal)
• Total cost (land + construction) - $510,000
• Sell price per home - $344,000
• Profit after soft costs, contractor fee, demo, site work, commissions, etc – 50k per house for a total of 100k profit
• Financing with a 10% down 18 month IO construction loan

Pro forma 

[Roberto Gutierrez]

Update 04012019

I've been bad about updating this but i'm going to see it through to the finish. The houses are about 1 week from completion. Taking care of miscellaneous punch list items. From rebuild to now we are at 6 months almost exactly. We applied for our COs and expect to have them in 10-15 business days from the city. We are planning to list around 360k per house and will likely stage them, get a full set of photos, and a drone video that i'll be happy to share. Once we sell i will release final numbers.

Keywords: Nashville, Development, Residential, New Construction, New Builds