Did you wonder what it cost to build a house? Have you heard prices from $50.00 a square foot to $300 a square foot?
There are various costs that you want to separate in order to understand the true cost.
I suggest that you have a separate cost for:
- The actual lots themselves
- Permits
- Any bonds that might be required
- Lot preparation for build
Now, and only now, can you get a separate cost on the actual “sticks and bricks.”
Your actual cost per square foot without the cost outlined above will be impacted by the floor plan and the finishes that you use. That is why the price range can swing from $50 a square foot to $300 a square foot.
Building a “box like” structure which is so common in most parts of the country affords you a more economical cost then a sprawling ranch. Believe it or not, it’s less expensive per square foot to build a 2400 square foot house than an 1800 square foot house. It’s the economies of scale with building materials which are highly dependent on the layout.
When considering a layout, you must first think about who your buyer is going to be. We like to think in terms of low maintenance on the exterior and eliminate formal dining rooms when we built to rent for investors. Houses should be designed for a smooth traffic flow which utilized space, is maintenance free on the exterior and is in a good rentable location.
I would like you to see two of the floor plans we are building right now for a large hedge fund. Please click here to download the plans so you can see the details of what we are doing.
The floor plans we are using include maintenance free exteriors with granite kitchen counters, crown molding, upgraded carpets and fixtures and 30 year architectural roofs.
Building houses is a lot more challenging than buying a house at a discount and rehabbing it.
For me, I can make a lot more money on one house, buying and and rehabbing it. But you are buying one house at a time and selling one house at a time.
The pictures below are of one of our developments in Regency Court in the metropolitan Atlanta area. As you can partially see, we will build 52 houses within 6 months and they were all pre sold. That’s what I like about building to rent but for some of you, you might be better off going to a casino in Las Vegas because building can be a bit of a gamble and it’s not good for everyone.
Build-to-rent in Paulding County outside Atlanta.
Build-to-rent houses in lesson No. 3
RJ Palano’s build-to-rent strategy involves key floor plan designs.
Build-to-rent homes in Regency Park Subdivision in Hiram, Georgia
Build-to-rent homes in Hiram, Georgia
Until next time….. By the way, if you ever have a real estate related question, email me at RJP@buycashflowproperties.com. If I can’t answer it, I will direct you to someone who can.
In addition to the floor plans above, do not forget to download my guide to buying in Atlanta.
[hs_form id=”4″]
0 Comments