All Forum Posts by: Tyler Merrell

Not real sure our West, but I am from Georgia. We have looked at loans here last week, and our bank has approved it. I think with smaller banks/small towns/(everyone knows everyone) sometimes they will take the risk. We have been approved for a couple hundred thousand with 6.5 percent interest for 10 years. Yes interest is high, but in my case, where we are able to build the houses and all...... we will have several properties under one note which will help us and we are not looking for a quick return but rather supplemental income. So Never over look locally ran banks. They may be small and not as competitive, but they take care of their own. 

I am looking at similar things. I am in a unique position to turn 15+ acres into a rental Subdivision, not apartments but many SFH and a few duplexes. Yes, they are multiply buildings, but they are strategically and closely located so that I can manage easier. My issue is knowing wether I should do more SFH or duplex style. I live in a rural community, so really feel that SFH will do better, but the Return is better on duplex due to cost of building.

Whats your thoughts.

I own 15 + acres in a rural community. My family and I can build homes and have done so for years. As we get older, we are looking at investment opportunities to supplement our incomes. My father is an architect/contractor, and my brother and I mid level+ carpenters.

Here is my question is it worth it? 

We are looking at starting small and building around a 1400 sq/ft, 4 bed/2 bath house. We will build it and will not pay ourselves for labor. The house will be appraised for $100,000-$130,000 using mid-grade material. Through our connections and labor the house will only cost us about 40-45 grand to build. We plan on getting a 30 yr mortgage at around 4.92 percent (this is actually 1 pt higher than offered). So if the house appraised at 100K we plan on re investing the other 55 to 60 grand in building a duplex (Duplex will cost about 35K 2 bed/ 1 bath each unit) in the area, once again no labor, and no mortgage on the duplex. We will have one mortgage payment at around $665 per month with property tax and insurance figured in. 

The house will rent for atlest $500 and the Duplex at least $350 per unit. That's $535 after NOTE and ins/tax. Is it worth it?( I figured in the lowest amount of rent but feel positive I can charge at least 650 for House and 450 for Duplex.) Oh yeah this will be a secluded neighborhood managed and ran by us. So kind of like a gated rental estate haha. 

If the House appraises for 130K of course we could build more house/duplex. Depending on exact budget. There are 3 of us investing and each of us are looking at building a 4 bed house and do the above mentioned......

Whats, yalls thoughts? I have researched the market well in this area and feel confident I can at least receive the rent listed. 

Should I Snow ball my mortgage since this is more of a long term investment of enjoy the lil earning now?