All Forum Posts by: John Kai

Have you considered relocating to Las Vegas - the Next Great American City! - No personal income taxes - low cost of living - high job and wage growth - diverse population - multiple housing options - the STRIP - Raiders, Golden Knights, WNBA, Soccer, Triple A baseball and soon the NBA will expand. - central location - Sunny days - No natural disasters or man-made for that matter - great public transportation - revitalization of Downtown and a burgeoning Arts District - terrific Airport - excellent health care options - more Its a sellers market everywhere. Cash out of LA, pick up a 4-plex, SFR and continue your free lance lifestyle with less stress. When it gets too hot in July and August...road trip and go see clients!

Thanks for the analysis.   I’ll be sure to be positioned to take advantage of that arbitrage play when the cycle returns again.   

Here is a better link to the pdf of the article: http://www.clevelandhousingmarket.com/images/MortgagesAreNotBad.pdf

Attached is an article I came across a few years back that explains the strategy - “How the Affluent Manage Home Equity to Safely and Conservatively Build Wealth”. I hope this adds value to this thread. https://drive.google.com/open?id=0B-vb_ErmfcohcmxiM1dQR2tXdUE Aloha!

@Account Closed, I hear you.  I've built two homes from the ground up and have that experience as an owner builder.  I'm thinking of having a couple of contractors bid on the jobs as if they will be building all three homes.  My plan is to get a discounted bid due to the proximity of the jobs and the work will keep his crew busy for the next 10-12 months.  I'll be seeking private financing to do this deal.

Thanks @Matthew Paul

@Patrick Franta good point about selling a finished product.  That's why land developers always make a deal with a builder to put up the first home in a development to get the ball rolling.  @Mark Waite similar thoughts about doing one and moving on to another one. 

I own the lot and the rezoning and subdivision is a way to get more value out of the property.  I don't have any costs related to the land acquisition, just for the construction of the home.

@Ivory Quintal located in upper Kaumana - Akolea Road

Hilo, Hawaii - big island

I need some direction from members.  I am in the process of subdividing an existing 9+ acre property into 4 individual lots:

• Lot 1: primary residence - includes an existing 3,000 sq ft, custom home built in 2006.  Zillow estimated value is $767K and will sit on 2.9 acres
• Lot 2, 3, & 4:  Comprise of 2 acres each.
• All lots will include water, cable, electricity and ocean views.

My dilemma is whether or not to build a spec home on the vacant lots and sell them for a higher end value?  A 2-acre lot with all utilities, ocean views has an estimated market value of between $200K-$275K.  New construction per sq ft costs are running on average $125-$150/sq ft.

What would you do and why?

Thanks for your help.