Deal Check: 9 Acre Lot Approved Plans for 33 Single Family Homes

[Ivan Vargas]

I have a 9 acre property in contract for $2.1M, comes rezoned with approved plans to build 33 single family zero lot line homes. That is $63,636/lot but its raw land so it will cost another $606k to develop the land and get it ready to build which brings it up to $82k/lot. Each house will run another $200k to build for a total of approximately $285k/house. 

Total upfront investment I'm looking at around $3.2M to build 2 model homes.

In the current market conditions I can list them for $399k and maybe accept offers as low as $350k. With my projections I believe they will net $50k each x 33 = $1,650,000. 

Is it worth it to get into such a huge project and investing all those funds for at least a year to make that amount? I want opinions from other investors, would you do it? why or why not? Would you get involved in the deal if presented the opportunity? Would you partner up and say invest $82k towards one of 33 lots and build a $200k house?

I believe its worth it of course and that is why I made an offer and signed a contract. But I heard from a few already maybe its not the best deal, and I'm thinking they only see it that way because its actually a ($285,000x33) $9,405,000 project. Also the fact that I have done this before and made $100k+ on each deal and on these I'm only expecting $50k each.

Whereas I'm looking at it like a typical flip, pay $285k and sell for $350k make $50k in 1 deal. Yes it may take a year to complete, but in a year it might sell for $385k. How much is average profit/duration on a fix n flip.