Hello everyone first post here I'm looking for some help. I currently have 114k saved up in a JP Morgan account avg 8% per year. I recently purchased 3.5 acres in Colorado. The property is in a HOA neighborhood that burned down in 2012. They have slowly been rebuilding and a bunch of the houses around me are worth over half a million and are not anything special. As of this time my girlfriend and I live in a custom built military truck that serves as our house. We love this live style but are always trying to make more money. My question is what would you do in this situation? I am thinking of building a simple 1000sqft house with a 4 car garage and then selling for 500k+ that would mean I would need to pull about 70k for materials. I can do 90% of the work myself as I am a contractor. Is it worth the loss of 70k for a year to then maybe make 500k?
I dont think you're considering all the factors. The 70k also wouldn't be a "loss" but a risk investment.
70k is for the materials, but how are you accounting for all the time you're going to spend building the place? How are you going to account for issues you may run into with the HOA?
Youre not just investing 70k to potentially get a profit upward of 430k. Youre investing your time which is imo far more valuable.
Assuming you keep your normal job. Is your plan to do work every day after your job or to work every off day essentially working 7 days a week for a year. Just things to consider.
Currently we are running summer hard but I coach high-school soccer in the spring in and fall which gives me most of everyday to work on the property I'm pretty confident I could get the house built in a year. The one we are planning is a simple 2 bed 1.5 bath with a larger family room. My thought process is if I pull in another 20-40k by the end of summer I can then work on stuff during the winter and spring so by mid summer the property is ready for sale.