Looking for advice/recommendation - Vacant Land in Mascotte, FL

[Jack Yu]

Hi BP family!

I'm looking for some advice. I own a vacant land in Mascotte, FL about 40mins west of Orlando.

Recently I saw two new vacant lands got bought by a developer/builder and they are building a brand new construction home on these 2 lots (12625 & 14599 Square Feet or 0.28 & 0.33 Acres) , the finish date is around Jan 2020. The two new homes already listed with realtors and list price is around $223k to $225k respectively, the house is about 1520-1530  SF.

So my question is the follow:

-If I can put down 20% my own money and borrow the rest with hard money or private money will I still able to make some profit after I build the new home and sell it with realtors?

-What is an average new construction cost for a 3 beds/2 baths/1 garage home in Mascotte?

**I purchased the vacant land 10 years ago for $66k (yeah I know I probably overpaid it at that time). 

Hoping to get some suggestion or comments to see how can I maximum my profit. If anyone know any home builder/developer in Orlando area that are investor friendly I would like to connect with them as well. 

Thank you for taking the time to read this post I know everyone's time is valuable, really looking forward to see everyone's reply.

Thanks,

Jack

[Barry Ruby]

Jack, please do.

I have found this little tool to be very helpful in getting a sense of hard cost by using data from new homes that are currently for sale in any market area. It consistently reports hard cost on a psf basis that is below what you get from realtors, contractors and pundits.

It is important to remember that the devil is "in the details". The major line items that need special attention are: on and off site cost, land/lot cost and the level of finish assumed. These are project specific variables that need to be applied to each project. 

There is no question that if you use $150 psf as your construction cost that the deal won't work given the sale price you noted. On the other hand, if the two comps you also noted are being offered at the price points cited, something has got to be off. What is it that the folks that are selling at those prices know that you don't know if hard cost is really $150 psf? 

If a home makes money at sales price that is equal to $148 psf how can local hard cost be $150 psf?