Where to go from here?

I’ve been building houses. Just finished my first one two weeks ago. I managed the project myself. I have a GC who gives me Power of Attorney to use his license.

I own two more parcels and I’ve applied for the building permit for house #2.

I think I can get the hang of home building very quick. But my question is where is the next logical step to expand? SFH are nice but there is a limit on profits unless I’m building many of them per year.

Some options include:

1. Build neighborhoods. This would require lots of parcel splitting, site work, civil engineering, new roads and utilities. There are many unknowns.

2. Condominium complexes. I think this may be easier than new neighborhood because the costs can be more easily predicted. But there’s also a limit here because I can only build 3 stories tall unless I’m in a special zoning district. And also land is very expensive. I would hope that I could predict costs before the project starts.

3. Build, rent, sell to investor. For example, build an apartment complex and manage it for several years before trying to sell it to an investor.

Congratulations on your first succesful build. Personally I wouldn’t jump to building larger projects yet, I would get a couple more build under my belt. Start to bring some investors in on your deals to build out that network and then look to take on the bigger projects.

Thanks. My first build was a 7 bedroom 5167sf, by the way. Cost $535,000 to build with an “ARV” of I’d estimate $820,000.

The next house I’m building is just 2927sf and I’ll be building it 3 times (save on the architecture and truss engineering costs on the 2nd and 3rd time I build it).

I will be doing more houses first, but I think I will do condominium complexes after that. I think that will be easiest to estimate the costs beforehand compared to the other options.

more power to you!

Man I need a GC to let me use his permit also.