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. 

I'd recommend having enough to close on the deal + rehab + $5k in reserve as a minimum. 

The home was built in 2006, great neighborhood, close to the highways, close to everything new that is being built, close to a military base.

That being said, sure beats using hard money and taking on all those insane closing costs.

If I only have $10k to my name, and I happen to find a deal that takes no money down, a) you likely still have some costs, and b) what happens whatn the boiler goes out 2 weeks after closing and the chimney starts leaking a week after that?

Meaning that if you fund a $5K EMD and then decide not to close you lose the EMD, or you pay for an inspection up front and risk missing out on the deal while you're waiting for the report.

I'm looking in miami florida for sites where we could get the numbers to work and we are getting close maybe in homestead. with that you could continue to pull cash out after it was built. in our market we need about .1 acres and we get land under 60k that the investors buy. the build cost is about 75% of appraised value or a little less. the investor refinances out on a DSCR loan and continues on. this strategy is ground up and it takes advantage of the buyers market for land in our market.

Been following the legislation closely. 

We also have many unique buyer incentives where an investor can get up to a 10% price reduction to come into immediate equity, or get that 10% as a cash back at closing to reduce your down payment and increase your ROI, or buy rates down into the low 4s on 30yr loans to maximize cash flow.

., broker fees, MLS dues, continuing education) versus alternatives like working closely with an investor-friendly agent.Consider whether the time required for licensing, post-licensing education, and maintaining your license is worth it for your investment strategy.If you need help finding an investor-friendly brokerage in Georgia or navigating the process, feel free to reach out!