Four months into my Three new builds

Well, I closed escrow on three vacant lots four months ago and we are about a month behind schedule. The hold up was with the civil engineer who was doing my grading plans. He promised 4 weeks, but didn't get finished until week 9. By the time we got the grading plans submitted, it was December 15 and the city development building was closing for two weeks for the holiday season from Dec 18- Jan 5.

So where am I now? All three building permits are on their second look with the city. I have physical addresses for each home. I have interviewed five general contractors and have chosen one that can perform and has a proven track record to deliver on time and within budget. We are building each house at $105/sqft. That doesn't included other costs, only the vertical. Right now we have a $550k budget for all three houses, which includes flat work/on and off-site improvements etc. We are actually about $11k ($3,333.00 per house) out of budget, but that includes allowances. That means, I can lower costs, depending on fixtures I choose and still negotiating with subs. Grading estimate is what put us out of budget and more retaining walls are needed than first anticipated. 

Other than that, the grading plans are getting resubmitted again this Tuesday and we should be breaking ground by the end of this month! I am only listing one house, which will bring traffic to the other two houses I will have as "FSBO." Once we break ground, we have a guaranteed 120 day completion on all three homes at the same time.

All in all, a $150k+ profit is worth some of the unforeseen costs. There's enough cushion if you know how to purchase land at the correct price. Development takes time to learn. The payoff is worth it though.