Viewing a single comment thread. View all comments

zensucht0 t1_iu6ocbv wrote

Reply to comment by Kindly_Boysenberry_7 in RVA Real Estate AMA - "What The H*ll Is Happening?" Edition by Kindly_Boysenberry_7

Honestly it's pretty close. I was looking at doing about a 500 sqft house, one big room for living and kitchen, with a bathroom and loft for a "bedroom". Then another 500 sqft building just for an art studio/office. Essentially two of the same building, just one without a kitchen or bathroom. Both 3d printed and container have their benefits, but my happy place is lots of exposed wood and windows.

I rounded up on estimated building costs, and then figured 50k as a good budget for land with trees, though I think that might be wishful thinking for something close enough to Richmond that I can still say I'm "in Richmond". But I came up with what feels like a decent budget of 250k. Ideally, under 200k though. I think finding the right property is going to be a real challenge.

Glad to see I'm not too far off estimate wise. Makes me feel a bit more confident about the entire thing. Thank you, your wisdom is appreciated. And if you have any advice I welcome it!

5

gracetw22 t1_iu6s7oj wrote

I do a fair number of construction loans- more lately than before, that’s for sure, but enough to have seen a lot of bids from a lot of builders. I have had many people come to me wanting to do what you describe and have become somewhat of a dream crusher on the topic, so my apologies in advance but hopefully this is all useful info:

The first problem with building a small/tiny house is that some costs do not scale at all with size of house- the septic system for a 500 square foot house is not 1/10 the cost of the system for a 5000 square foot house, getting utilities to the site is the same no matter what, the well is likely the same (or if you are talking city utilities, the cost to hook up to sewer and water is the same for any hookup) and then tradespeople will all have a kind of minimum “make it worth my time to drive there” figure, so you’ll find the roof and framing etc won’t scale directly to house size either. I have not seen someone end up building anything that didn’t roll in on wheels for less than 285k.

250 you might be right there, if you can find a lot that both allows two buildings of that size and has access to public utilities, but keep in mind that you won’t be able to get a mortgage on such a project since mortgages require appraisals that show sold prices of comparable properties, which you probably won’t have. You also will have your resale value limited by the fact that future buyers will also have to pay cash, which knocks out a big part of your already kind of limited buyer pool.

I think something like this is mostly a passion project and something you do if it’s your dream and money isn’t an object- if you’re just trying to keep a 250k budget and want somewhere charming with some privacy, and don’t mind not having a ton in the way of creature comforts, I think if you keep an eye out you can find something that you would be able to get a loan on (or have resale prospects to people who need a loan) with some land in Varina

5

Kindly_Boysenberry_7 OP t1_iu73wjh wrote

Dream crusher! :)

No, seriously, I'm glad to hear the information from a lender. I 100% agree, unless you can do this all with cash, you are better off buying a cabin/small house in [pick your location]. If you don't have to be in RVA and are willing to consider other locations, I'd suggest (personally) Fluvanna, Nelson, Bath Counties. Staunton is super cool IMO, as is Lynchburg.

5

Charlesinrichmond t1_iu70isg wrote

Very good advice saved me writing it

250k ex lot is very easy to do. 250k with lot is doable in fact almost easy in the right situation but it has to be value engineered.

2

Charlesinrichmond t1_iu705j6 wrote

You should know that two buildings will cost much more than one building to end up with the same square footage

2