All Forum Posts by: Chase Calhoun

Just wrapped up a build-to-rent project on Wilson Road, and I’m excited to share how it turned out! We built two homes side by side on infill lots with a lot value of $20k each and hard construction costs of $196k (builder’s fee not included). Both homes are now rented on two-year leases at $2,175/month. We sold one for $257k in cash and are holding the other one as a rental.

I’m curious about others’ thoughts on build-to-rent (BTR) projects, especially on infill lots. Personally, I find BTRs to be more predictable with fewer ongoing maintenance issues, and they tend to attract high-quality tenants. On the flip side, the margins aren’t quite as high as with rehab projects. Has anyone else had similar experiences with BTRs? Would love to hear any insights!

BEAUTIFUL!!!! Especially if you got the lots for a steal! Explain to me, so I understand. You had 2 lots and built 2 homes for approx $220,000 total, or 220 each? Then you sold one for 257. Did you finance out of the one you kept? And, sounds like you're exactly at the 1% rule, which is golden! Like you said, your maintenance should be very low on BTR. Strong work!

We are finishing up our first duplex, BTR, very similar numbers. We're looking to get a construction loan to do 3 more, simultaneously. Any guidance on that? I'm so glad to see how well you did!!!

We learned that contractors are hard to guard. Having my savvy husband on-site made ALL the difference! And of course, getting good land for cheap makes the numbers work!

I hope all is well!

Both lots were 20k total or 10k each. Our construction and holding costs were about 196k each. So 206k Total, each. or 412k for both. The second home is under contract to sell for the same price, 257k. So sales total for both will be 514k. Total profit less closing costs and commissions will be about 42,500 each or 85k total.

I would for sure get a construction loan, may be worth approaching 2 or 3 different banks and getting separate construction loans from different banks. The terms may be more favorable, if you are just starting out a bank maybe nervous to do 3 at once, therefore their perceived risk will likely be reflected in less favorable terms.

0 Votes

Little Rock, Arkansas

Quote from @Zul Budhwani:

@Chase Calhoun - great looking product you have built. We are proactively purchasing BTR's in Ward, Cabot, Jacksonville and Benton areas. For the most part the homes have been under $225,000 renting between $1495 - $1695 range. Focusing on homes that area ideally under 1500 sq ft.

Zul, that's awesome. Are they all from smaller builders or one of the larger reginal builders? How are the quality of the homes at that price point? We are trying to cut costs on the ones we are doing now, but still trying to keep the quality high. An example would be no custom showers like the one in this post and using tub/ shower inserts instead.

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Little Rock, Arkansas

Quote from @Brian Teeter:

Great looking product! I am seeing a lot of interest in BTR product from investors I network with.

Thank you Sir! Time to start a few more for your guys! I really do think these turn keys are a great option, especially for out of state investors. If for no other reason the more predictable and lower maintenance costs are a huge benefit.

0 Votes

Little Rock, Arkansas

Quote from @Jonathan Greene:

I think build to rent is a great option if you can get cheap enough land to make it worth it. Where I am in New Jersey, the numbers wouldn't work out at all, but those numbers are good on your sale and rent for the build cost, especially since they should appreciate there in Little Rock steadily. The exterior and interior look nice for the price.

Look up Jim Sheils. His whole business is build to rent.

Thanks, I will look him up!

0 Votes

Little Rock, Arkansas

3 Votes

Little Rock, Arkansas

I agree with Crystal.

You will be violating the contract, but the likelihood of a lawsuit, especially here in Arkansas is likely very low. The potential damages would likely be less than what it would cost to litigate, especially on a smaller deal.

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Little Rock, Arkansas

Thank you! We still need to get together for lunch. That is when restaurants are finally open again!😂

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Hello,

In my opinion pine bluff is pretty rough. I invest in some of the tougher areas of little rock but have passed on pine bluff. There are some amazing deals there though and if you had a good property management company in place it could be very profitable, especially with section 8/ housing.

3 Votes

All Forum Posts by: Chase Calhoun

Chase Calhoun has started 1 posts and replied 8 times.

Post: Build to Rent- BTR

Post: Build to Rent- BTR

Post: Build to Rent- BTR

Post: Build to Rent- BTR

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Post: Terminating House Under Contract

Post: Little Rock, AR investor/ real estate agent

Post: Pine Bluff Arkansas | How bad?