New rebuild in San Jose

[Nhi Nguyen]

Greetings my fellow BPers.

Inspired by all the cool diaries here, I'm gonna try starting my own.  This flip actually started a while back in late 2013, but I just joined BP.  So I have to do some of the catch up.

- First of all, the project is current and won't be finish any time soon (maybe 2-3 months), so I won't be able to share all the detail numbers till I got them straighten out at the end.

- Second, since this is a "catch up" thread, I will be breaking down into mini posts to keep it short(er).

Ok let's get started:

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+ Market Overview: 

• Age of neighborhood: ~25 years
• Average house size: 2500-2900 sqft, 2 stories, 4bed/2.5bath - 4/3, tile roof, stucco siding, most houses are still original, but clean
• Comps for the last 3-6 months: original/no remodel: average $310/sqft
• Current listings for sale (original as well): $372/sqft

+ Project Overview:

• Existing house got torn down completely, all foundation and EVERYTHING goes 100%.  All left is bare dirt.  So other than the demolition, this is pretty much a spec house new build.
• Purchase price: $365k, which includes:
  • all building permits and school fees
  • demolition cost
  • foundation only (raised floor setup), garage concrete floor & driveway are not done
• Lot size: 7400 sqft
• New house size: 2854 sqft + 475 sqft garage
• Budget in a nutshell: 
  • Land & soft cost: $365k
  • Rest of the cost (construction, holding costs, commission, etc...): $435k - $535K
  • Sale @ $350-$400/sqft ==> $1.15M - $1.15M
  • Profit: $100k - $215k

+ Time line Overview:

• 9/13: purchase
• 10/13 - 12/13: finish foundation piers
• 1/14 - 5/14: Underfloor plumbing, subfloor
• 6/14 - current: Framing, Rough of all trades

+ Notes:

• Big gap in times dues to lack of funding, and interferences with clients' projects
• All plans are final, no adjustment/modification
• Inspections are all done.  Ready to insulate & roofing next week.
• Most of in-progress photos taken are lost due to iPhone 6 transitions :) ==> my fault, not Apple.
• Budget estimates are based on a couple of crucial points: 
  • Conservative on construction cost since I build it myself.   
  • If market holds or improves +- 5-10% till the time of listing: sale price would be at least this or more :)

Photos will be loaded in the next thread.

Thanks everyone.