All Forum Posts by: Nick Harz

Do I need a permit to do so? And if so, is it ok to do the conversion while waiting for the permit to be approved? It is a simple change and the room already has 2 egress and all I need is a closet.

I am looking into STR in OBX, what my research shows so far is you get around 10% of house value gross rents annually. So if I buy for $500K, $50K in annual rents.

Sales Price: $500K

Gross ROI: 10% = $50K

PM + Maintenance Expenses: 20% of rents = $10K

Net ROI: $40K

Mortgage, Insurance ($2.2K/month): annually $26400

Down payment: $100K

Closing: $5K

Net profit: $50K - $10K - $26.4K = $13.6K

Net Cash on Cash return: $13600/$105000 = 13%

I am getting 12% on LTR in the same city as I am in. Is STR for this return worth it?

What am I missing here?

I found a good two and a half acres land in Richmond that is R3C zoned. I would like to subdivide it to smaller lots and construct new homes for selling and for me to rent out as well. I am an investor in real estate but have not done new construction before. I wanted to hear from this community what things to consider.

1) Can R3C zoning be subdivided?

2) I read that if I subdivide a land to more than 4, then it has to be a subdivision. What are the cons for that?

3) Should I partner with a developer or builder?

4) What due diligence can I do before buying the land?

5) Which home builders are appropriate for a project like this?

6) What else to consider?