Quote:
Originally Posted by Traum
In before the flat roof / rooftop patio = terrible idea in Vancouver comment.
With a building cost of $1.2 - $1.8M, only developers and deep pocketed investors would be able to pull it off.
A suitable house for this (to get torn down and rebuild) is still going to cost $2 - $2.5M in CoV. Add the construction cost, and you're looking at having to spend $3.2 - $4.3M.
So you sell for $4 - $5M from the whole thing, and you turn in a $700k - $800k profit over the course of 12 - 18 months (of pure construction time). That leaves around a 12 - 18% per year profit?
But you need to start with $4M+ in the bank first. And then take on a lot of risks. And do a lot of work.
I'm not so sure whether it is still a good investment...
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I can foresee a lot of smaller investors being hit hard with hiring shitty designers/architects that add cost and delays to their project. So that 12-18% profit might be more like 4-8%...