All Forum Posts by: Account Closed

Where are you getting your numbers from? $250-$350/sq ft. If you are pricing anything based on price per
square foot, then I don't know what you are talking about... because it doesn't cost substantially more
to build a house that is 2400 sq ft than it does to build one that is 1700 sq ft IF YOU ARE DOING THE
LABOR YOURSELF!!! It really only takes a couple more days. I know someone who has done this in Florida about 10 times and made a hefty profit each time. I would do all of the plumbing post-foundation myself.

Everyone would be doing it? I don't think so. Most people don't know how to build a house and even if they
did, they would be too lazy to do it and would hire a contractor and pay too much for labor.

I should have clarified. Not IN San Jose, but around San Jose. Just checked. The cheapest land I could get
would be about $20,000. But who knows, maybe I'll build somewhere else then. But if you take into consideration
the sales price, that is not very much. Why wouldn't it sell for at least $600,000. That's what houses there
are going for, and even more.

 The current drawing is about 2400 sq ft, but that could change. The exterior is masonry block with stucco finish. The dimensions of the house are in the blueprint that I did not include. The size of the lot in Florida is roughly .33 - .4 acres, but they are a dime a dozen and for only a few thousand dollars. Setback requirements are no issue. Interior finish? Do you mean paint? Costs of permits and fees is included. Here is my MS Excel spreadsheet that itemized everything to the dollar.

https://www.dropbox.com/s/ujx82fcnqpjnnjq/new%20ho...

Everyone would be doing it? Everyone would do the labor themselves? They would build a house from scratch with their bare hands? Really? They would do the drywall, the electrical, the plumbing, the roof plywood, the roof shingles, the gutters, the painting, and build the interior frames without hiring help? Are you sure? Do most people even know how to do that?

That is where the profit is.

I have the cost of construction itemized to the penny.

PS: What do you think of the house? Pretty sharp, huh? Any suggestions?

In Florida, I have a lot for $3,500. They are a dime a dozen. I have not looked into lot prices yet around San Jose, but I wouldn't buy anything within the city limits... it would be on the outskirts.

Yes, I have researched material prices. They are about the same. No significant difference and I did this by calling Home Depot in San Jose, CA and comparing to the prices I got from Home Depot in Orlando, FL.

I have not researched prices for contractors in San Jose. That might be more expensive, but I am doing a lot of the labor myself, so that would hopefully be minimal. The only things I need a contractor for are the foundation, the plumbing that goes in before the foundation, the masonry wall, the roof framing, and the HVAC installation. Everything else, I can do myself.

Common sense, along with my own research, would tell you that a hotel is a more profitable investment than an apartment complex. They are basically the same building, except that hotels charge a higher rate and the guests turn over faster. Much more rent is collected from a hotel.

To give specific examples, there is a $4,500,000 hotel for sale in Orlando, FL that profits $1,100,000/year.... there is also an apartment complex for sale for $5,300,000 that profits just $540,000/year.

How do these two types of properties act in a recession? Obviously, people will always need a place to stay, but they might not necessarily need luxury vacations when times are hard.

Still, all things considered and all other factors remaining the same.... I think hotels would make the better investment.

I am building a house...

https://www.dropbox.com/s/2ta56u5d2esz6h9/house.JP...

... that will cost about $73,000 to build, mostly because I'm doing a lot of the labor myself.

Based on current market data, I think I can sell it for $140,000.

Then, I will build the same house again, but in the area around San Jose, CA because I researched home prices and saw that houses go for 5.5x more. I can build the same house for the same $73,000 and profit around $540,000 after the sale and taxes.

Do you see anything potentially wrong with this plan?

Obviously, tourists make up a large portion of a hotels guests. What else is there?

Laborers? What else?

I don't plan on using my own money. 

I wouldn't take out any loans that I couldn't make sure I would be able to repay with the income.

 As long as the numbers work, I would do it. I'm having trouble finding anything that will do more than barely break even after accounting for loan payments, maintenance, taxes, etc.

What do you mean which market? Do you mean the location? Do I need to find an area that is expanding? I never plan to sell anything I buy.

I am not limiting myself to Orlando currently. I look all over Florida. How do I find the good markets. I will join that group.

Why should I not do hotels? From what I have seen, hotels are the most profitable real estate of all. It is the same building as an apartment complex, but the guests turn over faster and they charge a higher rate. But that is besides the point for now.

Why would I not be able to continue to fund my down payments with personal loans? Why wouldn't I be able to do this every time? 

Can you point me to how I can fund the investments using none of my own money?