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. 

Quote from @Emily Gowen: I only recommend investors sell when they can move the money to a better-performing investment or when the sale moves them closer to a specific goal.

Moreover, I would recommend prioritizing a W2 position over 1099 self-employment/sales for two reasons.

Due-on-Sale Clause: Most mortgages have this clause, which could let the lender call the loan due if you transfer the property.

Quote from @Mike Hern: question is, since you have to take the depreciation, and recapture at sale - what's the point?

I am a commercial real estate broker with an 81 unit portfolio for sale in Richmond, VA.

As a result, if that carrier goes under and is unable to pay claims, the state is not required to backstop the policy.

Translation: you helped your client to protect their cheating against the state assessment.I understand that your client, as a result, avoided paying $45k.

I don't know the rules in the US, but in Canada, you can do that every 2 years and when you sell, you don't pay taxes on the capital gains.

Purchase price: $136,000 Cash invested: $90,000 Sale price: $260,000 full renovation from studs What made you interested in investing in this type of deal?