To build or not to build

[Alexander Palomares]

Hi all.

I have an empty lot in so.ca. that trying to decide what to do with it. I purchased it approx 11yrs ago for 12k and its now valued at 60k. It has utilities already there. Zoning is for Single Fam.

Im wondering if I should build a new single fam home, place a nice pre fab modular home on it, or just sell it.

Im thinking build, as im fairly confident i can stand it up with approx 240k. Mortage on the loan would be approx 1,400 month, and rental comps go for $2k in the area. Plus I can appreciate over time.

With a nice modular, obviously its way less investment. Similar rent income, I believe, but I wont get the appreciation over time.

Thoughts?

[Frank Hinck]

@Dustin Allen

I agree with @Alexander Palomares thought to build a new home. You’ll have a find an honest & skilled Builder with experience in that City. Ask for 3 references of recently completed new construction homes (not remodels), find out what trades he self performs and what he subs out. Get architectural plans and have him bid THOSE plans (and maybe even get a 2nd bid) and get the AIA Stipulated Sum Contract not his contract / don’t sign his proposal, include material finishes & allowances. Feel free to connect with me and ask any questions along the process. Glad to help advise for free, I do this all day and hate to see it go wrong.