AND THAT PERSON IS A DAMN FOOL TO RENT A HOUSE THAT CHEAP THAT AT BEST MAKES 2400 A YEAR PROFIT WHEN THEY COULD MAKE 30K RISK FREE AT THE BANK IF THEY SOLD IT!
"person who is renting the home for $1700, DID NOT pay anywhere near 600K for it. That is what its worth today" Sorry man, if your In TEXAS, the rate of increase in values has not risen like that of the East and West Coast, not in dallas, not in Atx, not in Austin and not in SA. In fact the rate has been a steady climb and not a buble. So that person bought that house at what price and when? Im playing the game in the Lone Star State and I have not seen a jump on houses like you describe. I have seen homes that where 70k go to 150K because of the area, and the improvements, but Texas is not Cali. Well, not as of yet.
Well, I would have sold out of all my projects at 400 per sq ft..;> Shit, even the High End stuff we are developing is only around 214-220 per sq. ft. Shit, I would go liquid as fast as I could if I see 350 in the next year. Only thing I would hold on to would be the acreage that is not improved. Which I wil sit on for a good while anyways.
ERM, I build, as well. I won't go into details about construction costs here, but suffice it to say it's a fraction of what people are paying elsewhere - and I'm talking for an all brick, well built home, with a 3 car garage, full basement, and on a 90'x150' lot. I built my own home (3,200 square feet), 3 1/2 car heated garage, fully wired and set up for built in plasmas/media, central vac system, multi zone heating/cooling, attached sauna/jacuzzi, travertine bathrooms, toto toilets (that spray your ass for you), etc. for about 1/4 what it would cost in California. 110' x 150' lot, too.
Where you at buylosellhi ? I finished my last house in 2005 and won't do another one unless it is for me. Too much BS for too little money with everyone and their uncle trying to be homebuilders.
Troy, Michigan. It's actually a very nice area. I wouldn't have built at that time except I was already developing a sub. I am planning on moving soon, but the damn taxes aren't capped for anyone who buys my home, and that, coupled with Michigan's terrible housing and job market, means I may have to just dump it. Restrictive covenants (that I drafted) don't allow renting homes in the subdivision. You're right - if you're not in the industry, with an existing relationship with reliable and competent trades, it's more hassle and headache than it's worth.
The subs aren't a problem, I have always had connections in the industry and quite a few of them are good friends. I was referring to dealing with the customers who change their minds like the wind and then get all bitchy when it cost them more money. Too many builders in the local market doing it for nothing has you at best making 8 to 10% on a house in the end where as in remodeling a contractor gets 25 to 30%.
Absolutely. Margins on kitchen remodeling are 3x to 4x what new construction margins are. Same thing with additions and basement finishing. With the slow down, more people are going to be stuck, too, and the ones with money will just improve their homes.