Newbie advice please!

[Brandon K.]

Hi all,

I'm a long time lurker on BP, and I now have a few multiplex properties and some extensive renovation work under my belt. I have been interested in branching into small new construction projects for some time, and think that I have the right opportunity.

I have an offer accepted on a piece of land in St. Petersburg, FL where the numbers appear to work for building a single family home: I'm able to buy the land with cash, it's in a great location with rising home values, and homes very similar to the one I'd be building going for $220/sq ft. The area could support a 3-4 bedroom home in mid-grade finishes at 2000-2400 sq ft.

I want to make sure that I do my proper due diligence during the option period to make sure I've covered all the bases. The lot appears okay from a zoning and flood plain standpoint. Before the end of the option period, my first step is to get a buildable lot letter, then to check with utilities to make sure they are available at the site. Anything else that I need to do before the option period is complete?


Thank you in advance!

[Greg Dickerson]

@Brandon K. Sounds like you’ve got a good start on all of your due diligence items just make sure you do not close on the land until after you get your building permit.

 I would not do modular construction it does not hold the same resale value and still has a stigma attached to it. Best bet is to talk to several general contractors who build the level of house you’re looking to build.

 I would not buy stock plans online as they may not meet the wind codes for your area and they will need to be engineered etc. You can talk to a local house designer, architect, or design build contractor. Lots of options there.