A bunch of people texted me this week about Intuit shutting down Mint (personal finance tracker).
If you are affected by the change and looking for a new app to track your money, I highly recommend Copilot.
I've been using it for the past 3 years and love it.
disclaimer: the app costs ~$100/year.
☀️
Livin' La Vida Luna y Luca
How Much Does It Cost To Build a House?
They say, "Build your first house for an enemy, your second house for a friend, and your third house for yourself."
Although it's a little grim, I have to agree.
While I have no ill will towards the lovely couple that bought my very first new construction project, I definitely have room for improvement in my development process - mainly from a cost perspective.
The quality of our work is AAA+.
Building a house from scratch is no joke. Stating the obvious: it took way more time (double) and way more money (also double) than I originally thought it would.
We bought the property in December of 2021 and just closed the sale in November of 2023.
I originally thought it would take ~$500K to put this home together.... Boy oh boy was I wrong. Blew right past that number.
Starting Line
It costs $100K just to get to the starting line.
- Architect - $8.5K
- Engineer - $8.5K
- Permits - $16K
- Demo Existing Structure - $16K
- Site Work (Excavation, Leveling, Etc.) - $20K
- Dirt Removal - $15K
- Soft (Legal, Lender, Title, etc.) -$15K
Bones:
Let's talk about structure:
- Foundation (Superior Walls ) - $26K
- Lumber - $60K
- Framing - $35K
- Poured Concrete - $20K
- Masonry - $20K
- Windows - $35K
- Stairs - $6K
- Exterior Doors - $10K
Total about $155K
Venous System:
Now let's talk about Rough MEP's (Mechanical, Electrical, Plumbing). This is just the venting, wiring, and plumbing.
- HVAC - $30K
- Electrical - $30K
- Plumbing - $30K
- Insulation - $10K
A Cool Hundo
Gimme Some Skin
Let's wrap everything up:
- Drywall - $12K
- Drywall Install $12K
- Hardwood Floors & Tile Throughout - $30K
- Hardwood Floor & Tile Install - $23K
- Roof & Siding - $40K
- Roof & Siding Install - $30K
Another $150K
Hair & Makeup
Now let's go through the bells and whistles:
- Cabinetry Throughout - $35k
- Countertops Throughout - $20K
- Hardware & Accessories Throughout - $5K
- Lighting Throughout - $10K
- Plumbing Fixtures Throughout - $20K
- Glass Throughout - $4K
- Paint (Material) - $7.5K
- Paint (Labor) - $25K
- Trim (Material & Labor ) - $25K
- Appliances - $10K
Another $160K
But Wait, There's More!
- Asbestos Abatement
- Cleaning Fees
- Rent-A-Cop (road closures)
- Design Fees
- Project Management
- Drywell (Storm Water Solutions)
- Equipment Rental
- Safety Fencing
- Tree Removal
- Landscaping
- Irrigation System
- 360 Surround Sound & Security Cameras
- Dumpsters and Trash Removal
Easily another $100K altogether.
Grand Total:
This brings us to a grand total of roughly $750K in materials in labor, alone.
Then there are the time-related costs of holding the property:
- Interest- $170K ☠️☠️☠️
- Property Taxes - $25K
- Utilities - $5K
Before you know it, a million dollars out the door.
This house is 2,830 square feet between the 1st and 2nd floors. Closer to 4,500sf if you include the basement and finished attic.
$1M / 4500sf = $222/sf of finished space.
Those are rookie numbers. Should have come in at MOST $200/sf. The best in the business are putting homes together for $175/ft right now.
Next Time
Because I'm a glutton for punishment, I've found myself in a position to do this again.
However, I'm determined to get it done for less!
I don't think it will be difficult to save on the time-related costs. I'm confident we can cut that number in half. That's ~$100K in savings right there.
This project took almost two years to complete - the next one will be 1 year close to close.
As far as labor and materials go - I'm aiming to save another $100K there as well.
I think I can save $5K each on Plumbing, Electrical, HVAC, Mason, Painter & the Trimmer.
I also think I can save at least $25K on materials throughout if I source them myself instead of having a designer do it for me.
There's definitely room to save $20K between Windows, Doors, and Lumber. I'll have to make sure my Architect doesn't over-engineer the house.
My goal is to get the next similarly sized house done for $750K all in.
Let's see how that goes. 😬
