2 properties for $130,000
1) Single family home
- 1,000 sq. ft.
- 2/1
- Unfinished basement
- Acre lot
- Could use new roof & HVAC unit (duct work is good)
- Two car detached garage with city water tap connected
2) Vacant lot
- Can be subdivided into 2 lots according to city planning and zoning
- One tap fee already there
My plan was to separate the garage and the home, sell the home for $119,900 (I am an active agent in this market) tear down the garage and build a 1,400 sq. ft. home at roughly $80/sq. ft. and sell for $125/sq. ft.
My plan for the vacant lot is to build two 1,400 sq. ft. homes and sell at $125/sq. ft.
My numbers are $130,000 (total package) -$110,000 (sale of home) = $20,000 for 3 lots
2 lots already have taps in place which saves $9,000 total.
My father would be the builder and with construction costs rising we are around $80/sq. ft. to build right now. Which would put a 1,400 sq. ft. home at $112,000.
Lot cost per lot = $11,500 (added in cost for building tear dow, grading, one tap)
3 (homes) x $112,000 = $336,000 to build homes
Sale price $169,900 x 3 = $510,000
Commissions x 3 = $21,000
Private money cost = ?
Total profit (not including cost of private money) = $117,000
I have done a few minor flips, wholesale deals and a new construction before using private money but nothing that seems as big as this. I do not have private money lined up at the moment but want to make sure I am not missing anything or looking at this property through rose colored glasses!
