That rate will be lowered further to 40% in 2025, and 20% in 2026.

In lower-value areas like Sylmar, market values max out around $3.28 million, which results in a loss.The key takeaway?

Quote from @Devin James: Gross Margin is an important calculation for developers/builders.Gross Margin = Gross Profit / RevenueWe shoot for a 20% gross margin on our New Construction HomesReal #’s:Home Sales Price: $374KClosing Cost: $18,700Cost of Construction: $258KLand Cost: $30KGross Profit = $67K$67K/$374K = 17.9% Gross MarginCame slightly short of our goal of 20%Homes Values and Build Costs are constantly fluctuatingI wish we had a crystal ball build larger homes. average new build in our market is 2200 square feet, 4 beds, 3 baths, 2 car garage and sells for 515k. construction costs lower if design is good and find the median or average home sale price and push that up. my guess is you built too small. 347k is cheap. we target 429-479k price range in columbus ohio for single family homes and also only purchase close to urban core where premiums are 20% higher and we build smaller like 1500 sq ft where price per square foot goes up. 

They will be able to update you on what you need to do to help fire proof your home, and if there are any other options to lower insurance like external fire sprinklers, sealing up, attic vents, defensible space, etc.

So, the actual increase to market rent will be much lower.

It will give you a lower interest rate on both properties because you bought them as owner occupants, and it will require less down payment to get into. 

With $50k, you likely have enough to get started, especially if you target lower-cost markets or use a strategy like house hacking.

I invest primarily in a lower cost area but also own property in, and am looking in, a higher cost area.

Just like bonds & stocks, different properties will have higher & lower risks.

Shouldn’t it be at a lower multiple?”