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It is common for homeowner to tear down a house and build a bigger house, or even mega mansion if allowed by local codes. My question is whether it's too ambitious for a regular homeowner to build a 5-6 level, 20-30 unit condo building?
I did a very rough calculation based on building cost and per sqft selling price, and concluded this can have maybe 5-6 mil profit. Very attractive opportunity if doable.
Your "numbers" ought to be interesting. Care to share?
lot size is about 6000+ sqft
my city allows 6 story buildings
I googled apartment building cost to find 500-1000 USD per sqft; I use 600 for calculation
and condos around my area is selling around 850 USD per sqft
Are you saying that you have no experience as a builder? If so, you would be better off selling the lot to one. Your learning curve would probably eat whatever profits you think you might make.
Are you saying that you have no experience as a builder? If so, you would be better off selling the lot to one. Your learning curve would probably eat whatever profits you think you might make.
+1
A few months of holding a hard money/construction loan will take the wind out of anyone's sails pretty quickly.
Is it too ambitious for regular homeowner to build ...
To build more than what their contractor can do for them? Probably not.
But at that point they're really just about the financing and not the building.
My question is...it...too ambitious for a regular homeowner to build a 5-6 level, 20-30 unit condo building?
At face value- are you kidding me!?
Or, are you meaning "finance" a build?
As for the numbers- not even close. The profit margin is not that great. Building it is one thing- selling it is quite another! Marketing, advertising, commissions, grease money, etc., etc.; can literally eat you alive if financing isn't your forte'.
At face value- are you kidding me!?
Or, are you meaning "finance" a build?
As for the numbers- not even close. The profit margin is not that great. Building it is one thing- selling it is quite another! Marketing, advertising, commissions, grease money, etc., etc.; can literally eat you alive if financing isn't your forte'.
lot size is about 6000+ sqft
my city allows 6 story buildings
I googled apartment building cost to find 500-1000 USD per sqft; I use 600 for calculation
and condos around my area is selling around 850 USD per sqft
that's a quick sketch.
Very quick sketch. Have you accounted for non- salable space in your calculations? People are not going to pay directly for common areas such as mechanical rooms, hallways, lobbies, stairwells, etc.
You will lose 20-30% of your gross square cottage to areas like this.
Yes I meant financing the project - getting a loan from bank and hiring a contractor to do this.
I imagine even if I hire a contractor and sign a contract, there could still situations where budget can change, right? Or maybe the contractor trying to do things on the cheap to squeeze out more profit? These are all things I have encountered even building a bathroom. So my question is whether I would be able to handle surprises that come up with such a big project.
The biggest project I have done is a 300K near total re-build.
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