Building a basic home for a rental property

[Patrick Flanagan]

Hey bp memebers! I’ve read that building a investment property isn’t always the best idea vs finding a good established home. So I’m looking into the idea of building a very basic 1100 sqft 3bd 2 bth with a single car garage on a very basic lot. I’m just curious what could I have this house built for? It will be my primary residence, I will be doing all the electrical(I’m a electrician), Painting, flooring, and land scaping. So I’m hoping I can cut some costs out. The basic lots with electrical and sewage at the property go for 30-60k. I bought my house last year for 167,000 and it is appraised for 235,000. I have a very basic 1100sqft house. My mortgage payment is 1095 a month, and the local property management company said I could rent it out for 1390-1500 a month. So basic homes in my area are going for 200k-250k My whole goal is to move out in a year and switch it to a rental property afterwards. So do you think I can build a house cheaper then I can buy??