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