Revealing How Much it Cost to Build My First House for a Rental Property!!

Summary

In this detailed video, the creator shares the comprehensive costs associated with building their first house in North Houston, Texas. As a self-managed builder, they purchased materials and managed subcontractors directly, which influenced the cost dynamics. The initial budget was $198,590.81, but the final tally exceeded this by approximately $28,000, reaching a total of $226,102.65. Key expenses included land purchase, architectural plans, construction costs like concrete, framing, plumbing, electrical work, and HVAC, as well as finishing touches like siding, roofing, insulation, and landscaping. The video offers a transparent look into the financial realities of home construction and serves as a valuable resource for anyone considering a similar project. The cost per square foot for the build, including the house and garage space, was calculated to be $105. The creator also mentions additional expenses like a propane tank and the decision to use electric appliances in future builds to avoid such costs. Upcoming videos will discuss the investment aspect of the build, providing insights into the financial returns of this venture.

Takeaways

• 🏠 The total cost to build the house, including the lot, was $226,000.20, which was over the initial budget of $198,590.81 by about $28,000.
• 💰 The builder paid $27,000 for the lot in North Houston, Texas, and used cash, avoiding interest and fees from a bank loan.
• 📐 Architectural plans for the house cost $4,800, and a soil report was required at a cost of $850.
• 🚪 The cost of windows and doors was higher due to the choice of black-colored exterior, adding about $1,000 to the total.
• 🛠️ Framing material and labor for the house totaled $17,262.56, with lumber being a significant part of the cost.
• 💡 The builder opted for an underground power line, which added an extra $700 to the electrical work, costing a total of $10,000.
• 🧱 The foundation contractor's mistake of forming the foundation wider than planned resulted in about 50 extra square feet, costing an additional $5,000 to $6,000.
• 🌿 Landscaping costs exceeded the budget by about $3,000, mainly due to the unexpected need for a retaining wall.
• 🪟 Cabinets significantly exceeded the budget, costing $8,628.98 instead of the $2,500 allocated, highlighting the builder's initial lack of knowledge in this area.
• 🚗 The decision to install a two-car driveway instead of a single-car one doubled the cost to $11,000 for better functionality on a busy street.
• 📦 The builder received a refundable builder deposit of $2,575 and a credit card bonus and rewards of $1,800, which helped offset some of the costs.

Q & A

Where was the house built in the video?

The house was built in North Houston, Texas.

Did the builder use a loan to finance the construction of the house?

No, the builder used strictly cash from his checking account or a credit card and did not work with a bank to obtain a loan.

What was the initial budget for building the house?

The initial budget for building the house was $198,590.81.

What was the final cost of building the house, including the lot?

The final cost of building the house, including the lot, was $226,000.20.

How much did the builder exceed the initial budget?

The builder exceeded the initial budget by approximately $28,000.

What was one of the major cost overruns in the project?

One of the major cost overruns was in the landscape, where the builder spent $7,200 instead of the budgeted $4,200.

What was the cost per square foot to build the house?

The cost per square foot to build the house was $105.

What was the cost of architectural plans for the house?

The cost of architectural plans for the house was $4,800.

How much did the builder pay for the lot purchase?

The builder paid $27,000 for the lot purchase.

What was the cost of concrete work in the construction of the house?

The cost of concrete work was $26,775, which was the biggest cost on the build.

What was the builder's strategy for managing subcontractors and materials?

The builder personally handled all subcontractors and purchased all materials himself.

How much did the builder spend on cabinets, which was a significant cost overrun item?

The builder spent $8,628.98 on cabinets, which was significantly over the initial budget of $2,500.