Suggestions for Building 0.54 acres of Land?

[Victor Yap]

Hello BP,

My parents own a 0.54 acre (23522 sqft) piece of land. It is near Prarie View Texas A&M University, about 50 minutes from Houston, TX downtown. I believe it has potential for student housing.

My question to you is, what would you suggest doing with this piece of land? My dad has experience with building (he built the house I live in), but he lacks consistent motivation. What's something I could suggest that would be simple, yet profitable?

I'd appreciate any feedback you have.

Is this the right forum topic? If not, what is?

[David Edwards]

@Victor Yap

I was just looking at Prairie View day before yesterday, I am new to the Houston area myself and looking at the various sub-markets. From what I can see you are absolutely correct and student housing is likely the way to go.

I echo the recommendation that you put down modular units, they are faster but depending on your dad's experience he could also scratch his itch to build something and manage the ancillary roadwork, fencing, and so forth. 

In fact depending on your lands dimensions I would recommend you have developed either a 2/2 duplex or a 2/2 quadplex (two single story duplexes is easiest) on the property. I ran some initial numbers and I believe you can make that work with a 5% down new build loan, I recently saw that Quicken Loans is happy to finance modular. You and/or your dad just have to have the intention on living there when you get that low a down payment on that loan (as well as meet the other standard criteria)... But maybe you refinance out of that loan quickly into another after the build is complete and you can realize equity (ideally 20%'ish).

I'd also recommend putting on the lot, maybe between the duplexes a small laundry (make money vs having laundry in units) but build it out nice as a sort of community gathering place for your student renters.

This is just a quick idea I have been noodling for the last 2 days and no skin off my back to share. I am happy to discuss further or brainstorm with you if you would like just send me a connection and we can talk further.

-Dave