Livin' La Vida Luna y Luca
Luna: "Luca, let's play baby"
Luca: "OK! But first I have to put on my Mickey Costume"
Introducing Project Kice
What a shame. This is a perfectly fine split-level home. But I'm a hammer. And to me, this looks like another nail.
A local agent brought this off-market deal to us after seeing one of our listings hit the MLS.
The catch: A little quid-pro-quo, which we happily agreed to.
R&D: Ripoff & Duplicate!
We're R&D'ing a house that recently sold for an extraordinary price right down the street. I also happen to be friends with the builders of this fabulous home.
We'll change a detail here and there, but this is what we're building to. Imitation is the highest form of flattery. Hats off to the Husband & Wife team behind Oak and Marble Homes for putting this together.
The Numbers:
Let's quickly run through the numbers here.
We'll start with three buckets of expenses and end with our expected After-Repair-Value.
Acquisition Costs:
Our purchase price is $775K. After closing costs, prepaids, and fees, we'll be all in for just under $815K.
Cost to Build:
We're building a 6 bed, 6.5 bath, ~6,000 square-foot home (including basement). At $150/ft, we're looking at a build cost of roughly $900K. We're financing 100% of the project so we expect another $120K in interest expense. The total cost to build will be just over $1M.
Cost to Sell:
Between commissions, closing costs & associated fees, we'll spend just under $140K on the sale.
After Repair Value
- 2.150M - Conservative
- 2.25M - Base Case
- 2.350M - Aggressive
Comps
Comps are pretty cut and dry. The $2.6M comp is on a 400' deep lot so I'm sure those buyers are happy to overpay for the ability to put in a pool + pool house down the line.
The other comps are more in line with our lot size. The 2.2M 5/7 comp is on a corner lot facing a double yellow so we should be able to beat that pretty easily on house orientation alone.
Finally, the house we're using as inspiration just closed for much more than their asking price of $2.35M.
What's Next?
Our closing date is scheduled for June 20th, 2025.
We already have our survey in hand. We're expecting to see the first draft of floorplans later this week. Submitting for permits before we buy the property is feasible.
In regards to financing, we're all set! Our preferred low-cost hard money lender is lined up and a private investor is committed to funding our down payment and working capital.
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What I'm Working On...
