Long Beach Island Flip House

Building a new home takes planning, patience and partnerships to make the project work. First you have to understand the market and what adds value. Second you have to wait for the right set of market conditions and the right site to build. Lastly you have to have the right builder partner who offers a mix of price and quality to make the overall equation balance. If any of these conditions are not met the project can easily not work out as expected.

It is also important to keep in mind timing. Between the buying and building of a spec house or flip house on Long Beach Island you are looking at a roughly 1 year investment. Therefore you pricing of the project must take this future into account. Looking at LBI real estate market trends can help to determine if this is the right time to buy or the right time to wait. Ideally you want to get into a project like this just before the market increases thus riding the market up and adding market value as your home is being built.

I can help you understand each of these topics and give you some real world examples to follow. I can also introduce you to the right building partners who have experience in building homes on Long Beach Island specifically for this purpose.

Find the Right Location on Long Beach Island

Generally and historically speaking oceanfront, oceanblock and oceanside homes tend to offer the best returns. Interestingly they can also see some of the higher rates of depreciation when a market peaks. This can make the investment even more appealing.

From a real estate point of view, it is critically important to NOT overdevelop a lot. By this I mean, make sure that the cost of the new house or the cost of raising a house does not exceed the marketable value of your property. This is especially true in the case of raising a house where the total project may only be $20,000-$30,000 less than the cost of building a new home. If you are faced with this scenario, it is my advice to build a new home as new construction will have far more value in the LBI NJ real estate market.

Lot Size and House Design Matter on LBI

A nice "standard" lot such as a 40x100 or a 50x100 lot can allow for good flexibility in the design of a home. Ideally you want 4/5 bedrooms and 3.5 bathrooms in a home without feeling cramped. This is more than possible with the lot sizes mentioned above.

Most of the new construction on Long Beach Island takes place when an older home, such as a Cape Cod or a storm damaged home, is purchased and demolished to make way for the new house. Demolition costs will vary greatly depending on the size and style of the house but demolition will typically cost around $8,000-$10,000. Building a New Home in the LBI Real Estate Market on Long Beach Island NJ will, in most cases, take between 6 and 8 months to complete after demolition has been completed. The cost of building a new home will vary depending on a few factors such as:

• Complexity of the design
• Finishes selected by the homeowner
• Construction materials selected

Account for All Your Costs and Expenses

Especially in a falling market as an investor you must account for all of your closing costs and carry costs. In a slow or falling market it may take longer to sell your LBI home and therefore you have to plan for the worst. Additionally you have to consider your tax consequence in buying and selling a large project like this. You should also consider any loss from freeing up your money. For example will you fund this project by selling stock at a loss? If so it may be better to seek an alternative investment on LBI such as a rental property.