starting my first land developing project

[Jeff Yang]

I sent offer to one property that was on market for more than two years.

That property listed for $200k,one year later ,lowered to $150k.

right now is $84k.

I wrote an offer at $50k.

We reached on $65k.

The house is 113 yrs old,needs be torn down.

But the lot is 1.23 acres.

I called the county zoning office,was told that I can build 7 houses on this land.

I showed this property to an contractor,

he loves it,we are going to partner up.

The cost to build one SF house is about $120k,after built,the house can be sold for around $240k.

Totally cost will be $905k.

After built ,the value will be $1.68 M.

My plan is to refinance these houses,cash out $775k.

Then hold these houses for rent to own.

for the seven houses ,the monthly positive cash flow will be around $6k.

I am going to partner up with the contractor.

We borrow money from hard money lender,after refinance,pay off the lender.

I am working on this project now.

so far everything looks optimistic.

any advice will be appreciated.