Considering building on a lot in Eastwood (Houston, McKinney: fit in, for sale)

[abdulf]

I have a 50 foot wide and 100 foot deep rectangular lot in Greater Eastwood a block away from the light rail line. I am also currently renting and want a place to live.

I'm debating whether to keep it and sell it to a developer in a few years or build two or three townhomes and living in one and selling the rest. I've found it very difficult to find new construction in this area for less than 225k.

It seems like developers are focusing on larger lots closer to downtown. I'm leaning towards building on the lot.

The lot is worth about 50k. I have 30k in savings. I would need a construction loan to do this I imagine.

Has anyone attempted building a couple of townhomes on a small lot and selling them yourself (with help from professionals)? How did it go?

[philopower]

Not really a big fan of eastwood. It's one of the scuzzier areas of Houston. The location is good and there is some good food, but the whole industrial feel of that area is gross.

[DJboutit]

Not a whole lot you can do with a 5000sqft lot you can build a 4 story town home if you only want a 1 story it will only be 1200 to 1500 sqft so if you build more levels keep in mind each level will be in that range

[fordlover]

Originally Posted by abdulf

I have a 50 foot wide and 100 foot deep rectangular lot in Greater Eastwood a block away from the light rail line. I am also currently renting and want a place to live.

I'm debating whether to keep it and sell it to a developer in a few years or build two or three townhomes and living in one and selling the rest. I've found it very difficult to find new construction in this area for less than 225k.

It seems like developers are focusing on larger lots closer to downtown. I'm leaning towards building on the lot.

The lot is worth about 50k. I have 30k in savings. I would need a construction loan to do this I imagine.

Has anyone attempted building a couple of townhomes on a small lot and selling them yourself (with help from professionals)? How did it go?

First off, I'd drop the idea of 3 townhomes. Need a bigger lot. 50x100 will turn in to ~40x80 after easements/setbacks, etc. Which leaves you with a max. 1,000 sq. ft. foot print for each TH. Which side of the lot is @ the street, 50 or 100??

I'd just build what you want to make YOU happy. If you build another building intending to sell, and the economy takes a dump (taking the RE market with it), you'll be left holding the bag on something that you probably won't be able to sell for what you put in it. If you make enough income to support building and making payments on two Townhomes, then if it's what you want to do, go for it.

[Svensk08]

Not sure what you mean by "Greater Eastwood", but I've heard that some neighborhoods renewed their deed restrictions a few years back and townhomes aren't allowed.

To see what's currently being built on small lots, take a look at "Lawson Ave. Bungalows", a group of 3 two-story bungalow style houses with detached garages that InTown Homes is building In Broadmoor. Prices are in the upper $300's and one is already sold.

@Philopower -- apparently a lot of folks don't think Eastwood is scuzzy. The real estate market for those old single family homes is hot and there aren't many for sale.

[Failed Engineer]

Inventory in Eastwood seems to be perpetually low, moreso than even the hot neighborhoods around town. I'm not sure if that's because no one is selling, or because they move so quickly.

The Lawson Bungalows look interesting.

[abdulf]

Originally Posted by Svensk08

Not sure what you mean by "Greater Eastwood", but I've heard that some neighborhoods renewed their deed restrictions a few years back and townhomes aren't allowed.

To see what's currently being built on small lots, take a look at "Lawson Ave. Bungalows", a group of 3 two-story bungalow style houses with detached garages that InTown Homes is building In Broadmoor. Prices are in the upper $300's and one is already sold.

@Philopower -- apparently a lot of folks don't think Eastwood is scuzzy. The real estate market for those old single family homes is hot and there aren't many for sale.

Thanks for the link to the Lawson Ave. Bungalows. It appears each home in that example is built on a lot that's about 5000 square feet. I think this is one of their listings
1505 Lawson, Houston, TX 77023 - HAR.com

I believe there is a market for spec homes simply based on how quickly these properties are selling before construction is completed. The width of the property facing the street is 50 feet, so I believe it's possible to fit 2 narrow lot townhomes either in a detached configuration or a condo/duplex style configuration.

Prices for new homes on large lots are incredible - as expensive as the Heights and the Medical Center area.
$469k for a renovated house on a 5000sq ft lot
4722 McKinney St, Houston, TX 77023 - HAR.com
$369k for a resale house on a 6000 sq ft lot
4405 Bell St, Houston, TX 77023 - HAR.com

Looking at those two, this property appears to be quite a bargain
$255k for a suburban style home on a 6000 sq foot lot
1910 Jean, Houston, TX 77023 - HAR.com


It's seems the ballpark for new construction is 330- 380k for townhomes closer to downtown. I don't see any townhome style buildings in Greater Eastwood except further out near 45 and 610.
For example
147k townhome on 1600sq foot lot
7023 Woodridge Square Dr, Houston, TX 77087 - HAR.com
169k townhome on 1600sq foot lot
2735 Woodridge Manor, Houston, TX 77087 - HAR.com)

The greatest competition for a property I build would likely come from the 3rd ward. I've seen some townhomes in the 3rd ward (Houston new homes for Sale - Oasis InTown, Houston, TX - Townhome / condo style new homes) starting at 240k, and they are on 2500 sq foot lots within walking distance to the future light rail.
5155 Oasis Park, Houston, TX 77021 - HAR.com



Townhome (not detached) - 1584 sq foot lot, selling for 365k
1722 Hutchins St, Houston, TX 77003 - HAR.com
Townhome (detached) - 1529 sq foot lot, selling for 259k
3019 Commerce St, Houston, TX 77003 - HAR.com
Townhome - 1400 sq foot lot, selling for 165k
319 Plaza Del Sol Pa, Houston, TX 77020 - HAR.com
Townhome - 2021 sq foot lot, selling for 349k
1712 Live Oak St, Houston, TX 77003 - HAR.com
Townhome - 2937 sq foot lot, selling for 309k
1517 Nagle St, Houston, TX 77003 - HAR.com
Incomplete townhome - 2500 sq foot lot, selling for 299k
1209 Palmer St, Houston, TX 77003 - HAR.com
"Townhome" - seems like a duplex - unsure of lot size, appears bigger than 5000 sq ft - each unit is 389k
2823 Rusk, Houston, TX 77003 - HAR.com

[travelguy_73]

The reason you don't see townhomes in Eastwood is two-fold: (1) in Eastwood proper, then 90% chance it is deed-restricted single-family only (or restricted to what's already there, like a duplex). and (2) Eastwood's pricing isn't yet to where people are going to pay for a townhouse in a single-family area.

Think about it this way, if you are going to pay $300-350k in Eastwood, you are expecting a fully renovated single family home on a good block. You want a yard and a "house lifestyle." If you are looking for a townhouse, you are going to look in EaDo, Midtown, Washington, etc.

There are some townhomes in Woodridge (at least I think that's the neighborhood name), and they are the only three (sideways on the lot, very typical) on an otherwise single-family/duplex street. They sat on the market forever.

If it's a nice lot on a good block, I would list it and see where you get. You might also reach out to InTown and see if they are interested in infill like those Lawson homes. The prices are high for the area, but the homes certainly fit in style-wise.

[archangelus2]

Originally Posted by travelguy_73

You might also reach out to InTown and see if they are interested in infill like those Lawson homes. The prices are high for the area, but the homes certainly fit in style-wise.

This. Those InTown homes are exactly what should be done with an empty lot in Eastwood, as that is what people are looking for in this kind of neighborhood. Big, single family home with historically appropriate architecture. Hopefully the other two sell quick and this becomes a trend.

[Trainwreck20]

To see what's currently being built on small lots, take a look at "Lawson Ave. Bungalows", a group of 3 two-story bungalow style houses with detached garages that InTown Homes is building In Broadmoor. Prices are in the upper $300's and one is already sold.

Have a friend that is looking into buying one of these houses. They don't have kids now, but will probably sometime in the near future, and then will be looking at public schools five or so years after that. How are the schools in that area? My understanding is that is an 'improving' area, but will there be decent to good schools 5-10 years down the road?