What do you look for in a house?

[s_havinga]

I am dancing with the idea of building a house to flip and was interested to see what Beyond's must haves are. The house would likely be inner city (elbow park, south Calgary, altidore) and I would be targeting a sell price around $1MM. Some things I often wonder:

-what would you consider to be a min. for sq footage?
-what are your must haves?
-preferred # of bedrooms?
-exterior finish? Vinyl always seems 'cheap' to me, is this the general consensus?
-2000-2200sqft two story house with large backyard or bigger house with less yard
-anything that you look for the house to be close to? (park, shopping,...)
-are any of the niche rooms worth considering? (Pool table room, exercise room, wine cellar)

I haven't committed to anything or even really started looking at properties but thought it would be interesting to hear other opinions.

EDIT: I shouldn't have used the word infill- the plan would be to build a single house on a full 50'+ wide lot

[never]

Big garage.

[revelations]

I would pay very close attention to the demographics. If you're going to be selling to rich couples with no kids, its going to look very different than a house in Canyon Meadows for eg.

Anything that is minimal will likely appeal more to the 30s crowd vs the older 50s crowd who might prefer ornate.

http://3.bp.blogspot.com/-qwNVHc0Yn5U/UbHtZrbKMbI/AAAAAAAATXw/of4n3WR51T0/s1600/Black_On_White_modern_House_in_Romania_on_World_of_architecture_01.jpg


Garage, yes, but not a "working" garage in that sense. Enough to park 2 SUVS at least. Most million dollar homes wont have people wrenching on used cars.

[jwslam]

I haven't committed to anything or even really started looking at properties but thought it would be interesting to hear other opinions. [/B][/QUOTE]
From this thread: http://forums.beyond.ca/st/393595/advice-about-a-triple-garage-plot-/
Line drain is definitely a desired touch.

In a house, 2 bedrooms is just not practical, even if they both have en-suites. 3 BR minimum.
I would bet people living inner city want more house and less lawn; living inner city is more hustle-and-bustle so less lawn to mow and less garden to tend is ideal?
One of the things about infills that irks me is how long and narrow they are so layouts tend to be an issue; as well as how to get natural lighting through side windows without staring right into a neighbour's window?
I personally wouldn't have use for a niche room but a wet bar in the basement would be nice. Also consider in-floor heating for the basement, or carpet.
If the house is 3 stories, it makes a lot more sense for main floor laundry; that's one less flight of stairs, but still enough sound separation from the upper floors to run machines overnight; oh and maybe a laundry chute :bigpimp:

[Strider]

Lot size. I wouldn't buy anything for over $1MM on a 25' lot. Minimum 33', preferably 37.5 or 40'.

-what would you consider to be a min. for sq footage? 2400
-what are your must haves? large kitchen for entertaining, although seeing most of the newer infills out, I may be in the minority here
-preferred # of bedrooms? 3 up, 1 down
-exterior finish? Vinyl always seems 'cheap' to me, is this the general consensus? save the vinyl for $350k starter homes in communities outside of the ring road
-2000-2200sqft two story house with large backyard or bigger house with less yard max out the 45% lot coverage (including triple garage)
-anything that you look for the house to be close to? park, school, corner lot is a bonus
-are any of the niche rooms worth considering? (Pool table room, exercise room, wine cellar) home theatre maybe, otherwise no, house is small enough as it is - multifunctional/versatile spaces win

[jwslam]

Originally posted by Strider
-preferred # of bedrooms? 3 up, 1 down

Separate entrance mortgage helper?!?

[Strider]

Originally posted by jwslam
Separate entrance mortgage helper?!?

Guest room :nut:

[C_Dave45]

Originally posted by s_havinga
I am dancing with the idea of building a house/ infill to flip and was interested to see what Beyond's must haves are. The house would likely be inner city (elbow park, south Calgary, altidore) and I would be targeting a sell price around $1MM. Some things I often wonder:

-what would you consider to be a min. for sq footage?
-what are your must haves?
-preferred # of bedrooms?
-exterior finish? Vinyl always seems 'cheap' to me, is this the general consensus?
-2000-2200sqft two story house with large backyard or bigger house with less yard
-anything that you look for the house to be close to? (park, shopping,...)
-are any of the niche rooms worth considering? (Pool table room, exercise room, wine cellar)

I haven't committed to anything or even really started looking at properties but thought it would be interesting to hear other opinions.

It's easy.
Buy house for $500-$600k
tear down
build duplex
Sell for 900k each side.
Profit $$$.

It's easy!

[colinxx235]

^

Lol so easy especially with the market right now and permit costs go up and up and up and neighbours get worse and worse and worse about demands :rofl:

[s_havinga]

Sounds like most of my thoughts are in line with you guys. I also hate the long narrow infills I would likely go with a single house on a 50'+ wide lot. But on the other hand, I personally would have no interest in a house over 2500 sq-ft but there are lots of them out there. Because this would be built with selling in mind, I know that some of the design might not be what I would personally go for if I was moving in.

For the garage, I am thinking 3 car would be ideal but if I happen to buy a property with a decent 2 car, I am not sure I would get my money back if I were to tear it down and build a triple.

[C_Dave45]

Originally posted by colinxx235
^

Lol so easy especially with the market right now and permit costs go up and up and up and neighbours get worse and worse and worse about demands :rofl:
We need a "sarcastic" emoji.

I currently work with very skilled contractors who've been doing this for 20 years, and have sold probably 20 or more duplex's/infills and one is walking away from it, because it's such a pain, the other lost a bunch of money on his last one, another took over 2 years to sell, with carrying costs being over $5,000 per month.

These are skilled contractors with all their trades lined up, paperwork in order, etc, etc.

[Buster]

Just finishing my reno. I couldn't imagine doing this to actually earn my money.

[Rocket1k78]

Originally posted by C_Dave45

We need a "sarcastic" emoji.

I currently work with very skilled contractors who've been doing this for 20 years, and have sold probably 20 or more duplex's/infills and one is walking away from it, because it's such a pain, the other lost a bunch of money on his last one, another took over 2 years to sell, with carrying costs being over $5,000 per month.

These are skilled contractors with all their trades lined up, paperwork in order, etc, etc.

I'm still using the old XR200 sarcasm detector from 2002 and it even picked that up lol

I couldn't imagine what its like to be a true craftsman in your trade right now. The amount of hack trades whoring themselves out right now has got to mess with pricing. The infill game is beyond scary now and a ton of guys have held back with builds. pre 2015 every other joe blow/dealer was a builder but now theyre gone.

[colinxx235]

Yah I know you were sarcastic, I was just adding onto it Dave. Plus I know you know your shit. If it was easy money you would do it yourself and save shit tons with labor/knowledge.

My family has been in home building for ~20 years or so and they are done with it in general. Infills were the worst ever since Nenshi came in. Permit costs have went up by a few 100%, the blue fences were a headache and very costly, developers have gotten ridiculous on the demand side. The amount of leverage neighbors have to essentially black mail you while doing an infill is retarded. Almost always end up doing landscaping, new fence, or paying out of pocket just to get them to stop barring every little thing (this is mainly kensington, bridgeland, mardaloop, killarney area... fucking lawyers/"environmental friendly housewifes")

Costs just keep getting loaded onto the builders and that snowballs to the buyers/market and everyone else likes to shift blame and claim who is greedy etc.


I'm not sure what the experience level of the OP is but in this market I know if you find the right seller you will get in very low and have a chance to return a good chunk once the market rebounds but when that will be... who knows :dunno:

I know lots of guys on here are suggesting 3 car garages but damn I haven't found many areas that have the space for that, but then again we mostly did duplexes because generally that is a better ROI. In which case they have a divided 4 car garage at the back, but not always can you get two large suvs and definitely not trucks depending on the alley/which lot.


But as for the original questions sq ft I would always try to maximize. Personally I would suggest duplex vs infill but thats your money/choice.

We almost always 3 up 1 down. Or in some cases we had 4 levels and did 1/2/0/1 setup in a kensington infill.
Fuck vinyl, do stucco or cement harding board. If you're going to pricepoint @ 1MM people do not want cheap finishings around.
In some of the upper 1/lower 2MM houses we often did a wine cellar and exercise room. Did a wet bar in the basement with cork flooring for the intentions of pool table/gaming area. This works up and down, in the current market I'd say its a bit of a backfire but when healthy the hipsters love all of it. The wine cellar if done properly is quite expensive and often not given its deserved value. Exercise rooms are pretty simple, throw in some big mirrors and buy padded flooring that is removable so home owner can easily swap out if they don't like.

[s_havinga]

Originally posted by Buster
Just finishing my reno. I couldn't imagine doing this to actually earn my money.

I loved doing mine, I would look forward to get off work so that I could get to my house and get working.

What I didn't like was the 16 hour days between working and building the house.

If I do another one, it would go one of two ways. either I would do it as my full time job, or, I would contract a lot more out and just GC the build.

[holden]

I know that semi-attached duplex prices in Altadore are really hurting. Perhaps that means its a good time to jump in (doubt it), but I'm betting the people who bought and built over the past few years aren't doing so hot.

[HiTempguy1]

Originally posted by Buster
Just finishing my reno. I couldn't imagine doing this to actually earn my money.

Reno's != new house building.

We quit doing renos over a decade ago. Higher initial capital required, but building new houses is where it is at. Renos usually have less ROI, and you have to do twice the work (teardown/tear out, then replace, all while working around the already built house).

[Swank]

Originally posted by revelations
Garage, yes, but not a "working" garage in that sense. Enough to park 2 SUVS at least. Most million dollar homes wont have people wrenching on used cars. Agreed, I'd focus on a very comfortable, finished, heated garage for 2 large vehicles with plenty of overhead storage or a man-cave/loft above (Mike Seaver poster optional :D )
A finished basement with heated flooring or a sub floor + carpet. Skylights would also help with the lack of infill natural light to some extent.

[Buster]

I didn't say I didn't enjoy doing the reno. I said I couldn't imagine doing this type of stuff to make money at it. I actually like doing things around the house, but the second I pick up a tool, I'm BY FAR the highest paid trade here. I couldn't imagine doing all of this stuff with the idea of making a profit on a flip.

[phreezee]

Privacy, aka not backing on to neighbors.

[Xtrema]

Originally posted by Buster
I didn't say I didn't enjoy doing the reno. I said I couldn't imagine doing this type of stuff to make money at it. I actually like doing things around the house, but the second I pick up a tool, I'm BY FAR the highest paid trade here. I couldn't imagine doing all of this stuff with the idea of making a profit on a flip.

Infield duplex for profit days are over.

Only good locations get them moving now.

I just hate the idea of paying close to $1M and still share a wall with someone and all you have to do is drive another 15min of so and you don't have to and get more bang for $.

[HiTempguy1]

Originally posted by Buster
I didn't say I didn't enjoy doing the reno. I said I couldn't imagine doing this type of stuff to make money at it.

And I agreed, stating relative ROI is way better with new builds. Reno's are fun to do in your spare time if you have it, especially when it turns out nice.


Originally posted by Xtrema


and you don't have to and get more bang for $.

Well, you do get a lot of "bang" for your dollar in a duplex infill. And by "bang", I mean listening to your neighbours do it :rofl:

[Rocket1k78]

Originally posted by Xtrema


I just hate the idea of paying close to $1M and still share a wall with someone

Yep. If you're young with no kids then who cares but imagine being a family living beside a young professional who likes to party:nut:

[Sugarphreak]

...

[asp integra]

Big, private yard, west facing.

[89coupe]

Originally posted by s_havinga
I am dancing with the idea of building a house/ infill to flip and was interested to see what Beyond's must haves are. The house would likely be inner city (elbow park, south Calgary, altidore) and I would be targeting a sell price around $1MM. Some things I often wonder:

-what would you consider to be a min. for sq footage?
-what are your must haves?
-preferred # of bedrooms?
-exterior finish? Vinyl always seems 'cheap' to me, is this the general consensus?
-2000-2200sqft two story house with large backyard or bigger house with less yard
-anything that you look for the house to be close to? (park, shopping,...)
-are any of the niche rooms worth considering? (Pool table room, exercise room, wine cellar)

I haven't committed to anything or even really started looking at properties but thought it would be interesting to hear other opinions.

The clients I'm taking out looking at $900-1M+ inner city infills are wanting the following.

Stucco or large cement panel board.
Open Concept
9-10' smooth finished ceilings on all floors
8' solid core doors
Engineered hardwood
High end floor to ceiling cabinetry
High end appliances
Multiple fireplaces
Wet bar
Theater room
low maintenance backyard, preferably south or SW facing.
Large ensuite
Large walk-in closet
Hardwood on all levels
Heated floors in basement
Floating cabinets with back lightning
Finished basement
Large 2 car garage
Quiet street
Altadore is #1
South Calgary #2

[Buster]

Originally posted by 89coupe


The clients I'm taking out looking at $900-1M+ inner city infills are wanting the following.

Stucco or large cement panel board.
Open Concept
9-10' smooth finished ceilings on all floors
8' solid core doors
Engineered hardwood
High end floor to ceiling cabinetry
High end appliances
Multiple fireplaces
Wet bar
Theater room
low maintenance backyard, preferably south or SW facing.
Large ensuite
Large walk-in closet
Hardwood on all levels
Heated floors in basement
Floating cabinets with back lightning
Finished basement
Large 2 car garage
Quiet street
Altadore is #1
South Calgary #2

With all of that, can they get it in that budget? Also, they would certainly need to be getting a duplex, right?

[Xtrema]

Originally posted by 89coupe


The clients I'm taking out looking at $900-1M+ inner city infills are wanting the following.

Stucco or large cement panel board.
Open Concept
9-10' smooth finished ceilings on all floors
8' solid core doors
Engineered hardwood
High end floor to ceiling cabinetry
High end appliances
Multiple fireplaces
Wet bar
Theater room
low maintenance backyard, preferably south or SW facing.
Large ensuite
Large walk-in closet
Hardwood on all levels
Heated floors in basement
Floating cabinets with back lightning
Finished basement
Large 2 car garage
Quiet street
Altadore is #1
South Calgary #2

Like these?
https://www.realtor.ca/Residential/Single-Family/16853809/539-34A-ST-NW-Parkdale-Calgary-Alberta-T2N2Y6-Parkdale

https://www.realtor.ca/Residential/Single-Family/17097769/515-31-ST-NW-Parkdale-Calgary-Alberta-T2N2V6-Parkdale

[s_havinga]

Originally posted by 89coupe


The clients I'm taking out looking at $900-1M+ inner city infills are wanting the following.
...


Good info, I also updated the OP but I originally misused the word infill- the plan would be a single 2200+ two story house on a full 50'+ wide lot

Do you find that houses that meet the criteria you mentioned are selling or is it pretty slow out there right now for that market?

[C_Dave45]

Originally posted by s_havinga


Good info, I also updated the OP but I originally misused the word infill- the plan would be a single 2200+ two story house on a full 50'+ wide lot

Do you find that houses that meet the criteria you mentioned are selling or is it pretty slow out there right now for that market?

Inner city
2200 sq ft SFD
50' lot
~$1,000,000??

That would be quite the feat. A 50' lot in Altadore or similar will run you around $500k. Many are more than that. A 2200 ft house above the million dollar range will expect a very nicely finished house.
You're not going to be able to build that for much under $300/sq ft.
Now add in your demo costs, permits, planning, etc. And your costs are up around $1.2 mill. Plus about a years worth of your time and capitol investment..

Jordan can correct me if I'm wrong, but I'm thinking new houses in the $1.5 million range are probably taking the biggest hits right now.

[s_havinga]

Originally posted by C_Dave45


Inner city
2200 sq ft SFD
50' lot
~$1,000,000??



My current thought is that if I can hit the ~$1MM price point, there is a market for people who want a bigger house on a large lot in a desirable location that just want a nice place to live and don't really care if they have exotic hardwood railings and $1000 light fixtures. My focus would be layout and getting the right lot.

I get lots of compliments on my current house and spent well under $300/ sqft to build it.

[msommers]

Are trades/materials any cheaper right now?

[C_Dave45]

Originally posted by s_havinga


My current thought is that if I can hit the ~$1MM price point, there is a market for people who want a bigger house on a large lot in a desirable location that just want a nice place to live and don't really care if they have exotic hardwood railings and $1000 light fixtures. My focus would be layout and getting the right lot.

I get lots of compliments on my current house and spent well under $300/ sqft to build it.
So layout and the right lot, that's the ticket?
Well good luck with that then. Let us know how it goes.

subscribed.

[bjstare]

Originally posted by s_havinga


My current thought is that if I can hit the ~$1MM price point, there is a market for people who want a bigger house on a large lot in a desirable location that just want a nice place to live and don't really care if they have exotic hardwood railings and $1000 light fixtures. My focus would be layout and getting the right lot.

I get lots of compliments on my current house and spent well under $300/ sqft to build it.

Well it seems obvious to me, but I'll say it anyway: Getting compliments =/= getting buyers.

Also, if the area is somewhat desirable (i.e. expensive lot price) I'll be blown away if you can build what you're describing (and have it still appeal to the buyer shopping in the $1MM market) for a cost of $1MM without cutting some serious corners to keep price down. Source: my family runs a luxury home building/reno company.

Edit: If you're able to do it, please let us know how.

[s_havinga]

Originally posted by cjblair


Well it seems obvious to me, but I'll say it anyway: Getting compliments =/= getting buyers.

Also, if the area is somewhat desirable (i.e. expensive lot price) I'll be blown away if you can build what you're describing (and have it still appeal to the buyer shopping in the $1MM market) for a cost of $1MM without cutting some serious corners to keep price down. Source: my family runs a luxury home building/reno company.

Edit: If you're able to do it, please let us know how.

Like I say, at this point its just a concept. Beyond has a lot of people with money and also a few high end realtors so it seems like a good market to get some idea's from. Several of my family members run small construction / Home building companies so I am pretty aware of what it takes to do.

Totally agree that compliments is totally different then selling. I honestly have no idea what I could sell my place for- don't really care either as we don't plan on moving for a long time.

Obviously building with a 'for profit' mentality is a lot different then building for myself so that's the reason for the thread- I wouldn't build what I want- I would build to what would sell best.

I also expected some people to just say it is a dumb idea- Dave, I hear ya loud and clear.

If I do do it, I probably wont be running a thread or updating on how it goes (besides maybe a link to the for sale ad). Just like I wouldn't post my salary on here, I wouldn't be posting how much I made or lost either.

[Strider]

Originally posted by s_havinga
Good info, I also updated the OP but I originally misused the word infill- the plan would be a single 2200+ two story house on a full 50'+ wide lot


Originally posted by s_havinga
My current thought is that if I can hit the ~$1MM price point, there is a market for people who want a bigger house on a large lot in a desirable location that just want a nice place to live and don't really care if they have exotic hardwood railings and $1000 light fixtures. My focus would be layout and getting the right lot.

I get lots of compliments on my current house and spent well under $300/ sqft to build it.

The term infill isn't misused if you're tearing down a house and building a new one in its place. The difference is between attached infills (duplexes) or detached infills.

I'm probably in the demographic you're building for. I'm looking for a new detached inner city house on a larger lot and don't want to pay for mono stringer staircases, $1000 light fixtures, etc. There's a few things on Brad's list that are must haves though, like 8' solid doors, flat ceilings, lots of windows, etc.

My nagging concern would be that 2200 sq ft is too small to demand a high enough selling price to compensate for the cost of a large lot. In the communities you listed, you're probably looking at $700k for an old house on a 50' lot. Assume you build 2200 sq ft for $250/sqft, add some cost for demo, permits, (potential asbestos abatement) and you're easily in for $1.3MM.

[HiTempguy1]

Originally posted by s_havinga

If I do do it, I probably wont be running a thread or updating on how it goes (besides maybe a link to the for sale ad). Just like I wouldn't post my salary on here, I wouldn't be posting how much I made or lost either.

Haters gonna hate. If all entrepreneurs and business men listened to the naysayers, nothing would ever get done.

If you build the house to current design trends, and manage costs, it may take a lot of your time, but at the very least you aren't going to lose money. It's all about whether the ROI is worth the risk you are taking.

In a downturn economy like this, I wouldn't. If you find a place to tear down that is priced really well, I'd jump on it and hold it for a year or two (rent it out?) if you can float it, then proceed with your plan.

[C_Dave45]

Originally posted by HiTempguy1


Haters gonna hate. If all entrepreneurs and business men listened to the naysayers, nothing would ever get done.


There's a difference between "Naysayers" and "Haters" and experienced people with decades of experience in the business telling someone their idea is completely ludicrous. I'm not trying to be a dick or shit on someone's idea...I'm trying to caution them on how almost impossible it is.

It would be like me coming onto beyond saying..."Ya know what? I'm gonna get into the wedding photography business. Yeah, I've got a DSLR that I paid $500 bucks for and a couple of good lenses. I just learned how to work with lightroom, and I'm sure there's a market for a decent wedding package that isn't the high price the professionals charge. Yeah I'm gonna offer a weekend wedding package for a $1,000 bucks. Hey that's 500 each day for myself!! I can do the rehearsal, the dressings, the wedding and the reception. I've had a lot of people that say they really like my photos and that they think I'm a good photographer".

The OP is proposing to try his hand at a project that takes over a million dollars investment, plus a years time that if it goes wrong, could financially ruin him and take many others down with him.
It's not some weekend DIY project. His idea and numbers are just way, way off.

I've been in this business 35 years, and I've seen it happen time and time again. Beginners try to build a house to make money, only to go bankrupt and stiff a bunch of good tradespeople in the process. Hell I've seen it happen to many skilled GC's with years of experience.

But hey, don't let professionals in the know discourage you. If you can somehow do what no other skilled contractor is able to do, then please pass on all your knowledge, because you'll retire a millionaire.

[Buster]

I see it all the time, in unrelated ways.

I have the good fortune of dealing professionally with people who are educated/successful/rich. It is very common for people to assume their success (or luck) in one area/business of life will translate to other areas.

It's often why you see doctors get into trouble, or oil patch engineers. They think they are smarter and know more than they do about other things (usually investments or finance).

[s_havinga]

Originally posted by C_Dave45

If you can somehow do what no other skilled contractor is able to do,

If a skilled contractor can't buy a property build a house and sell it for profit, I would argue that he is not a very skilled contractor at all.

I acknowledge that there are huge risks and potential disasters but I believe there are also potential upsides.

Your comments make a lot of assumptions about my experience in the field. This thread was started to see what people would want to see in a 1MMish house, I will determine if it is financially feasible in a different way.

You started your own company, also a risk over a steady paycheck from 'the man' but one you obviously decided was worth it and I hope for you it was.

I'm not mad you think it's impossible, and I understand that you have seen guys get burned trying their hand at this- I don't take the warning lightly. I wont just jump into this, I'm doing my homework. If I can't make it make sense on paper, it wont happen.

[bjstare]

Originally posted by HiTempguy1

Haters gonna hate. If all entrepreneurs and business men listened to the naysayers, nothing would ever get done.

If you build the house to current design trends, and manage costs, it may take a lot of your time, but at the very least you aren't going to lose money. It's all about whether the ROI is worth the risk you are taking.


LOL

You think he isn't going to lose money? Based on what?

If real estate tanks another 15% YoY for the (at least) year or two he takes to build this, it will be nearly impossible to make money. That doesn't include unforseen schedule delays due to weather/contractors/permitting/etc. And I'm only just scratching the surface regarding risk.

@ OP, like others, I'm not specifically trying to shit on your idea. I sincerely hope you succeed if you do go for this. I also sincerely hope you don't listen to someone who says you can't lose.:rofl:

[Sugarphreak]

...

[s_havinga]

Fair enough, I assumed by contractor he was referring to General contractor. I would definitely GC the project.

[HiTempguy1]

Originally posted by cjblair


You think he isn't going to lose money? Based on what?


Did you not read the rest of my post? #readingfail. Good job though. Let me explain it for you like you are 5 years old though:

I didn't say go ahead exactly with his plan as is. I even said that for myself, I wouldn't do it right now at this very second. But if he has a decent head on his shoulders, he can build a house. My family also has a home building business, well ladee da! It most certainly is not "impossible". Arguably, in this current economic climate, you should be able to build a property for about as inexpensive as it is going to get, unless property values keep going down (I would doubt this, but that remains to be seen, property values are NOT going down 15% in the next year or two on top of what they already have, now THAT would be a crash).

However, to act like you can't make money in this current housing market is also silly. Of course you can, plenty of people and companies do, and are doing it right now. Rule #1 of business is to always cry poor though.


Originally posted by C_Dave45

I'm trying to caution them on how almost impossible it is.


But it isn't :dunno: There is risk and reward in any business venture. If people only ever went for the sure-fire guarantee, a lot of business ideas wouldn't get off the ground.

And Dave, do you build houses, general contract them or? I know you do contract work, but do you actually build houses? Because if you don't, then how would you know? You probably wouldn't, just like you argue some in this thread don't :dunno:

I already laid out how I would do it as a one off build. I don't think it would be worth the time, but there is a path forward with the idea and a way to make money with it. His decision to decide if he can pull it off.

[max_boost]

It's not worth it for the average Joe.

BTW, a urinal in the man cave would be awesome haha

[C_Dave45]

Originally posted by s_havinga


If a skilled contractor can't buy a property build a house and sell it for profit, I would argue that he is not a very skilled contractor at all.
.
I didn't say that did I? I didn't say a skilled contractor can't make money on an infill. I said it can't be done with your criteria and expected numbers.

You said you wanted to build a house and sell it for ~$1mil.
You said you wanted it a SFD on a 50' lot in inner city.
You said you would build it around 2200 sq ft. (which I might add, is very small for that price point of house/property)

I'm pointing out that you won't be able to do that with those numbers. Your costs alone will be way above $1 mil.

If you're doing it for ROI, then a SFD on an innercity 50' lot is the poorest way to do that. The best way is a duplex.

But all that aside, even if you revise your numbers, the work, money and time involved is huge, and if not done properly, can turn into a disaster.

[bjstare]

Originally posted by HiTempguy1


Did you not read the rest of my post? #readingfail. Good job though. Let me explain it for you like you are 5 years old though:

I didn't say go ahead exactly with his plan as is. I even said that for myself, I wouldn't do it right now at this very second. But if he has a decent head on his shoulders, he can build a house. My family also has a home building business, well ladee da! It most certainly is not "impossible". Arguably, in this current economic climate, you should be able to build a property for about as inexpensive as it is going to get, unless property values keep going down (I would doubt this, but that remains to be seen, property values are NOT going down 15% in the next year or two on top of what they already have, now THAT would be a crash).

However, to act like you can't make money in this current housing market is also silly. Of course you can, plenty of people and companies do, and are doing it right now. Rule #1 of business is to always cry poor though.



I said if RE tanks for another year or two, it will be impossible to make money. He's already going to be running a thin margin if RE stays flat, based on the criteria he laid out. For all we know, RE prices in that sector of the market will climb 25% in the next 18 months and he'll be laughing all the way to the bank :dunno:

And since you know that property values are "NOT going down 15% in the next year or two", why don't you look into your crystal ball and tell me what oil price is going to do? Or gold price? Or the share price of (insert any company here)?


I'm not sure why you think I didn't understand your post. I was just cracking a joke at the fact you said OP can't lose money. You must be smart enough to know that's a ridiculous statement to make, especially since you even recognise there's a risk/reward factor. If he can't lose money, then enlighten me... what exactly is the risk?

[03ozwhip]

now that I've just built my house mostly to what I wanted, my views are a bit different, but this is what I'd go for...
3+1 beds, 3.5 baths, triple garage, delete tub and put a huge shower in master, and a walk out basement. I agree in the 1mm price point, stucco is what I'd want.