All Forum Posts by: Andrew Sundseth

This is very interesting to me. How hard is it to rezone a lot? I have a lot that is zoned A-1A or Agricultural District (minimum building site of 1 acre). I would love to be able to subdivide it into two 1/2 acre lots.

That doesn't sound accurate but I get the picture. Get all your debt paid off and then reevaluate if you want to build or not. If you cannot get your personal finances in order then I would not suggest building. 

Your equity will be the appraised value minus the cost to build. For example, if it costs you $50k to build, and the house appraises for $100k then you will have $50k or 50% equity. Once you get a mortgage you can leave 20% equity and cash out $30K or sell for $50k gross profit.

Build cost includes ALL costs. 

Taxes can be high depending on what you do with the property after it's built. 

I was looking into using a pre-approved/package home design thinking it would save me money but it would only save about $5k. I think I'll save more by using an experienced local architect that can provide contractor contacts and cost-saving design features and products (like windows, doors, finishes, etc.).  

 you are not in a good position to build. Pay off your debt, and build up a 6-month emergency fund or preferably more. Builders need cash and emergency cash funds, you do not want to be using credit cards that you can't pay off to build your home while already having credit card debt. You didn't say anything about your income which is also a big factor.

I just got a land loan that required 25% down for a 5 year arm. 

We plan to build in 1-2 years but this first year is going to be planning, permitting, excavation and septic. It takes 6-8 months just to get a building permit. 

How do you plan to build? Owner builder, pay a home builder? And how do you plan to pay for the build, cash flow it or construction loan?

I think you misunderstood my plan. I'm planning to build a new home with an ADU or granny flat.

My wife and are planning to buy land in the next month or two so that we can build a home in the next year or two. Our plan is to build a SFH with an attached ADU that will cash flow and ideally have a good amount of equity upon completing the build. I am currently looking at house plans and I'm having a hard time picking a design that will be cost-efficient to build, produce solid cash flow, and appraise well. I know all of these results are relative to my budget but I'd like to get input from others who have built to rent or have ideas/experience to help me pick a good plan.

Thank you in advance!

Just to clarify, I’m going to use a modified package home plan or the same design as my friends house so my cost for plans is goi g to be much cheaper than a whole new set of plans.