The Cost To Build My Second Home Build! (FULL BUDGET BREAKDOWN)

Summary

The video script details the meticulous budgeting process for a second home build that will become a rental property. The owner has meticulously calculated the costs, which total around $250,000, including land, labor, and materials. The budget encompasses a wide range of expenses from land purchase to architectural plans, renderings, and various construction costs such as utilities, concrete, framing, plumbing, electrical work, and HVAC. The owner opts for high-quality, durable materials like aluminum windows and a standing seam metal roof to ensure longevity and reduce future maintenance for the rental property. Additional costs include insulation, drywall, painting, carpentry, flooring, and landscaping. The script also accounts for refundable deposits and potential credit card cash back rewards, providing a comprehensive financial plan for those interested in building their own home or investment property.

Takeaways

• 🏡 The total budget for the second home build, including land, labor, and materials, is projected to be around $250,000.
• 📈 The land purchase for the second lot was $27,000, following the purchase of the first lot for the same amount.
• 📋 Architect and engineered plans for the house cost $8,100, with a detailed 2D to 3D rendering of the home adding an extra $500.
• 🏗️ Surveying and builders risk insurance are budgeted at $1,500 and $400 respectively, to manage risks during construction.
• 💧 Municipality Utility District fees for permits and utilities are $8,355, and a porta potty for the construction period costs $604.
• 🌲 Site work including tree removal, brush clearing, and pad building is budgeted at $7,500.
• 🧱 Concrete foundation with rebar and a specific PSI rating is planned for $26,440.
• 🛠️ Framing materials and labor are estimated at $25,222 and $5,695 respectively, with engineered wood products increasing the cost.
• 💧 Plumbing, including materials and three phases of work, is budgeted at $10,976.
• 🛠️ Electrical work and HVAC are budgeted at $10,000 and $9,158 respectively, including material and labor for a complete installation.
• 🚪 High-quality materials such as aluminum windows, a nice front door, and quartz for countertops and backsplashes are chosen for longevity and durability, despite the higher cost.

Q & A

What is the total budget for the second home build, including land, labor, and material costs?

The total budget for the second home build is around $250,000.

How much did the land purchase cost for the second home build?

The land purchase cost for the second home build was $27,000.

What is the cost of the architect and engineered plans for the house?

The architect and engineered plans for the house cost a total of $8,100.

What is the estimated cost for the rendering of the house?

The estimated cost for the rendering, which turns the 2D plans into a 3D model, is $500.

What is the cost for hiring a surveyor during the construction process?

The cost to hire a surveyor at several different parts of the build is $1,500.

How much is the Builders Risk insurance expected to cost?

The Builders Risk insurance is expected to cost about $400.

What is included in the site work cost of $7,500?

The site work cost includes knocking down trees, cutting down brush, stripping the top layer of grass, and building the pad with Select Fuel.

What is the cost of the framing material for the house?

The cost of the framing material for the house is $25,022.

How much is allocated for the plumbing trade in the budget?

The budget allocates $10,976 for the plumbing trade.

What type of roof is planned for the house and what is the estimated cost?

A standing seam metal roof is planned for the house with an estimated cost of $14,000.

What is the total projected cost after including all known expenses and estimates?

The total projected cost after including all known expenses and estimates is $260,000.

What is the strategy behind choosing more expensive and durable materials for a rental property?

The strategy is to ensure the house lasts longer and requires less maintenance, which can be beneficial for a long-term rental property investment.

Outlines

00:00

🏗️ Home Build Budget Overview

The speaker is constructing their second home, which will become a rental property. They have completed a detailed budget in Excel, estimating the total cost to be around $250,000, inclusive of land, labor, and material costs. The budget breakdown includes the land purchase, architect and engineered plans, rendering, various permits and insurances, site preparation, and other construction-related costs. The speaker provides a detailed account of each cost, including the purchase of two buildable lots for a total of $54,000, with the second lot costing $27,000. They also discuss the costs associated with hiring a surveyor, builders risk insurance, and other budgeted items that have not yet been incurred.

05:03

📐 Detailed Cost Breakdown for Home Construction

The speaker delves into the specifics of the construction costs, starting with the concrete foundation priced at $26,400 for a four-inch thick slab with rebar. Framing material and labor are next, with the material costing $25,222 and labor $5,695. Plumbing and electrical work are also detailed, with plumbing at $10,976 and electrical at $10,000. The HVAC trade is budgeted at $9,158, and window materials, exterior doors, siding, and roofing are all accounted for with specific costs. The speaker emphasizes the choice of a standing seam metal roof, which is more expensive but longer-lasting. Other line items include insulation, drywall, painting, trim carpentry, cabinetry, hardware, and quartz installations, all contributing to the overall durability and quality of the rental property.

10:04

🛠️ Finishes and Final Touches for the Rental Property

The speaker discusses the choice of higher-quality materials for the rental property's longevity, such as a standing seam metal roof and spray foam insulation. They provide costs for various interior components like drywall, paint, trim, carpentry, cabinetry, and hardware. The selection of quartz for countertops and backsplashes in the kitchen and bathrooms is highlighted, along with the choice of more expensive materials like aluminum windows for their potential longevity and strength. The speaker also budgets for exterior components like siding, roofing, and landscaping. They mention the costs associated with appliances, driveway construction, and other finishing touches like a mailbox and gutters. The landscaping is kept simple with a rock bed and wild grass plants, and the budget also accounts for a dumpster and trash haul off, as well as a cleaning crew for the final clean.

15:05

💰 Final Budget Calculations and Course Promotion

The speaker sums up the costs, indicating that the total projected budget for the home build is $260,000. They note that some costs are based on received bids, while others are estimates from their experience. The speaker also mentions refundable deposits and anticipates a credit card cash back reward, which will offset some of the expenses. As a final note, they promote a course they've created to teach others how to build their own homes and invite viewers to subscribe for future updates on their rental property project. They also ask viewers to comment on what they would like to see in the next video and provide a link in the description for more information about the home-building course.

Keywords

💡Rental Property

A rental property refers to a real estate asset that is purchased with the intention of generating income from renting it out. In the video, the speaker is building a second home that will be used as a rental property, indicating an investment strategy to generate passive income.

💡Budgeting

Budgeting is the process of creating a detailed plan for how much money will be spent on various aspects of a project. The video's speaker has created a comprehensive budget in Excel to manage the costs of the home build, which is crucial for staying financially on track.

💡Architectural Plans

Architectural plans are detailed drawings and specifications that outline the design and construction of a building. The speaker mentions that they have purchased architect and engineered plans, which are essential for obtaining permits and guiding the construction process.

💡Rendering

A rendering in the context of construction is a visual representation, often a 3D model or a colored image, that shows what the completed building will look like. The speaker spent $500 to create a rendering of their home, which helps to visualize the final product before construction begins.

💡Builders Risk Insurance

Builders risk insurance is a type of insurance that covers potential damages and accidents that may occur during the construction process. The speaker is obtaining this insurance to protect against unforeseen events such as accidents or natural disasters that could damage the property.

💡Municipality Utility District

A municipality utility district is a local government entity that provides public utilities like water and sewer services. The speaker mentions a fee associated with this entity, which is necessary for obtaining the required utilities for the new build.

💡Silt Fence

A silt fence is a temporary barrier used in construction to prevent soil and debris from being carried away by water runoff. The speaker discusses the cost of installing a silt fence to protect the construction site during periods of heavy rain.

💡Standing Seam Metal Roof

A standing seam metal roof is a type of roofing material that features raised seams, creating a durable and weather-tight surface. The speaker chooses this type of roof for its longevity and low maintenance, despite the higher upfront cost compared to other roofing materials.

💡Spray Foam Insulation

Spray foam insulation is an insulating material that is applied as a liquid, which then expands and hardens to fill gaps and cavities. The speaker opts for spray foam insulation due to its ability to seal the home tightly, which can improve energy efficiency and durability.

💡Drywall

Drywall, also known as plasterboard or gypsum board, is a common material used to finish the interior walls and ceilings of a building. The speaker discusses the costs associated with purchasing drywall materials and the labor for hanging, taping, and texturing it.

💡Cabinetry

Cabinetry refers to built-in storage furniture, such as kitchen cabinets or bathroom vanities. The speaker mentions a significant budget allocation for European-style, frameless cabinets, which are chosen for their modern aesthetic and functionality.

Highlights

The individual is building their second rental property with a total budget of around $250,000, including land, labor, and material costs.

The land purchase for the second lot was $27,000, following the purchase of the first lot for the same amount.

Architect and engineered plans for the house cost $8,100, which includes detailed drawings like elevations, floor plans, and electrical plans.

A 3D rendering of the house was created for $500, transforming 2D plans into a visual model of the home.

Surveyor costs for the build are estimated at $1,500 for various surveys and certifications.

Builder's Risk insurance is budgeted at $400 to cover potential accidents during construction.

Municipality Utility District fee, akin to a local permit, is $8,355, which includes water and sewer tap provision.

A Porta John for the construction site is budgeted at $604 for a three-month period.

The cost for a culvert, not needed in the previous build, is $4,000 for this construction.

Silt fence installation to prevent soil erosion during construction is budgeted at $1,250.

Site work, including tree removal and pad construction, is estimated at $7,500.

Concrete foundation costs are $26,400 for a four-inch thick foundation with rebar.

Framing material for the larger house is budgeted at $25,222, including engineered wood products.

Plumbing costs, including materials and three phases of work, are $10,976.

Electrical trade labor and materials are budgeted at $10,000, including trench digging for power connection.

HVAC trade, including all materials and labor, is budgeted at $9,158.

Window materials, switching to aluminum for longevity, are budgeted at $6,519.

Exterior doors and siding materials, including a nicer front door, are budgeted at $9,500.

A standing seam metal roof, chosen for its longevity, is budgeted at $14,000, which is four times the cost of an asphalt shingle roof.

Spray foam insulation is chosen for its protective qualities and is budgeted at $4,275.

Drywall materials and labor, including hanging, taping, and texturing, are budgeted at $9,500.

Carpentry materials, including baseboards and shelves, are budgeted at $1,000, with potential for variation.

Cabinets, opting for a modern look with European faceless or frameless style, are budgeted at $9,000 for materials alone.

Interior doors, door handles, and bath trims are budgeted at $3,250 in total.

Quartz countertops and backsplashes in the kitchen and bathrooms are budgeted at $7,000.

The final projected cost for the build is $260,000, with some costs being estimates based on previous builds and others being fixed based on received bids.

Transcripts

so I'm currently under construction on

my second home build ever and it's going

to end up being my second rental

property I just finished the total

budget and I believe this house is going

to cost me around 250 000 including land

labor and material costs okay so this is

what the budget looks like that I've

built in Excel for my next home build as

you can see there's probably 30 to 40

line items we're just going to go

through here line item by line item and

reveal each call so the lot Purchase

cost was twenty seven thousand dollars

at the end of last year I purchased a

track of land that had two buildable

lots for a total of fifty four thousand

dollars I already built my first house

on one of the lots and this is my second

home build so therefore if I purchase

the whole track of land with two

buildable lots for fifty four thousand

dollars that means the first lot twenty

seven thousand dollars and now the

second lot is twenty seven thousand

dollars so the lot Purchase cost was

twenty seven thousand dollars all of the

rest of the costs are budgeted items

pretty much so the architect and

engineered plans they cost a total of

eight thousand one hundred dollars I

actually already purchased the plans

just got those back we're on day six or

seven of the build but this is what the

engineered plan ends looks like

so you can see the house here's the

first page the front elevation the back

elevation the house it also has the

floor plan

the Second Story floor plan two-story

house and we have the right elevation

what it's going to look like from the

right side the left elevation

and here's the second floor joist and

beam plan

the roof plan

electrical plan

here is the part of the oh Foundation

footprint

here's the foundation plan with all of

the beams drawn in the architect and

Engineering Plans cost eight thousand

one hundred dollars next cost is the

rendering which is this photo right here

on the right which basically brings the

2D paper plans to a 3D model look like

of what that home will look like so this

in color photo right here cost me 500 to

get made all the rest of the costs

throughout this budget are budgeted

items and I have not incurred any of

this these cost yet to hire a surveyor

I'll have to hire a surveyor at several

different parts of the build to have

them come out uh complete certain

surveys and elevation certificates and

stake the building Corners so we know

exactly where to build the house it's

going to cost fifteen hundred dollars

Builders Risk insurance to cover make

sure the build is covered in case of an

accident happens it's going to be about

400 bucks this is you know all kinds of

things could happen during the build you

know maybe someone's out walking their

kids kids down the street and they step

on a nail and then they'll go through

the Kid's Foot and then of course we

would be liable for that now I'm sure or

maybe you know the roofer is smoking a

cigarette and throws his his cigarette

off the roof and lands by a gas can the

gas can explodes burned the house down

you know so of course I'm gonna get

Builders Risk insurance to make sure all

of those items all those crazy

situations that could happen I want to

make sure I'm covered if they do the

next I have mud here that's called

municipality Utility District basically

this fee is kind of like a local permit

that I have to get approval to be able

to build here as well as they're going

to provide the water tap and Sewer tap

and that is 8 355 next is a porta John

or Port of toilet I'm doing this for

three months the total cost for that

Porta John is 604 dollars this is of

course so all the contractors have

somewhere to use the restroom when

they're working on the site next is

Culvert this is a cost that I'm

incurring that I did not incur on the

last build because the last build

happened to have a culvert already set

at that lot this one does not so I have

to pay a contractor to set a culvert

pipe down

into the ditch and then cover it with

dirt that is a four thousand dollar cost

there the silt fence this is to keep

dirt from uh you know whenever there's

rains or heavy rainfall or heavy heavy

floods during the course of the

construction this just to keep all of

the material and dirt material on our

site and keep it from washing into the

ditch one thousand two hundred and fifty

dollars

this is that's a cost that I'm not too

uh confident in right there I probably

could have got that done at a lot better

cost but it's what I'm paying one

thousand two hundred fifty dollars next

is site work seven thousand five hundred

dollars this includes uh there was a one

or two trees that had to get knocked

down all the brush there's some brush on

the lot that had to get cut down they

had to strip the top layer of grass out

of the way so then they could build the

pad and of course building the pad was

bringing in maybe like 10 dump trucks of

Select Fuel and building the pad seven

thousand five hundred dollars next is

concrete concrete twenty six thousand

four hundred dollars I'll show you the

concrete proposal that I received so as

you can see twenty four thousand six

hundred and fifty dollars this is for a

four inch

thick concrete foundation with number

three rebar 15 inches on Center Concrete

would be 3000 psi blah blah blah pretty

much this is how the engineer stamped

the foundation plan so that's the way

we're going to do it twenty six thousand

four hundred dollars next is framing

material twenty five thousand two

hundred twenty two dollars uh the last

house I believe cost me about fifteen

thousand dollars for the framing

material this house being probably about

500 extra square feet uh in size as well

as there's a pretty good there's a

there's out of that framing material ten

thousand dollars of it is specifically

for engineered wood products which is

engineered i-beams in engineered wood

products always increase the cost

slightly so twenty five thousand dollars

for framing material

next is framing Lumber or framing labor

five thousand six hundred ninety five

dollars I know I'm paying two dollars

and fifty cents per square foot for

framing labor to for a subcontractor to

frame the house from start to finish

Plumbing total ten thousand nine hundred

and seventy six dollars here's the bid

that I received from the plumbing

subcontractor ten thousand nine hundred

seventy six dollars and eighty cents

there's three phases to the plumbing you

know the underground plumbing the in the

wall Plumbing phase two and then phase

three is the finishes or they come

install the valves the shower head the

you know all the trim

they're also going to be supplying two

bathtubs so that's the cost for the

plumbing trade and then I'm going to be

purchasing the toilets uh the shower

trims or the shower head the valves the

sinks I'm going to be supplying those

material for the house and that's a

thousand dollars electrical trade

ten thousand dollars that's for the

electrician to supply all of the labor

and all the material for this home build

also they're gonna dig a trench to

connect the electricity from the power

poles underground to the house so ten

thousand dollars there HVAC trade nine

thousand one hundred and fifty eight

dollars also have a bid from them right

here

nine thousand one hundred and fifty

eight dollars you can read through all

the line items in this bid but I'm not

not gonna do that but essentially they

are turnkeying the whole trade supplying

every single piece of material that is

needed to be able to complete the HVAC

trade and labor of course nine thousand

one hundred fifty eight dollars next is

window material

I believe I already got this bid beat

for six thousand five hundred nineteen

dollars I haven't updated the budget to

be exact it is just a budget but six

thousand five hundred nineteen dollars

and that should be just a little bit

lower but I'm going to be installing on

the last build I installed vinyl windows

and they're not quite as nice as the

ones I'm going to be installing are

aluminum to be honest I don't know the

real benefits as far as performance

there but aluminum to me should last

longer and you know be stronger and

whatnot so going with aluminum windows

on this build exterior doors three

thousand dollars

last time I spent a combined like eleven

hundred dollars for exterior door

material on the other build this one is

three thousand dollars I'm actually

going with a very nice front door and a

probably not as nice an exterior back

door but I am going to go with a nicer

front door so three thousand dollars for

the the budget on the exterior doors

siding and cornice material this is

basically all of the lap siding panel

siding and so as you can see we're doing

lap siding here panel siding on the

front here and then cornice is going to

be your fascia and soffit all of this

siding material is going to be six

thousand five hundred dollars and then

how we do it where I'm at where there's

one contractor who installs all of the

windows exterior doors siding and

cornice I'm gonna pay four thousand five

hundred and fifty dollars I'm purchasing

all of the OSB I'm a roofing contractor

on a roofing company roofing company so

I'm purchasing all of the OSB decking

material from my roofing supply store

and that is why it's not included in the

framing material because I'm purchasing

it somewhere else but long story short

I'm purchasing that from ABC pla two

thousand three hundred dollars roof deck

labor for someone to install the roof

deck the roof decking eight hundred

dollars

and then I'm actually going with a

standing seam metal roof on this home

build as you can see this standing seam

metal roof I'm not doing asphalt

shingles

you know I'm building this house I'm

kind of uh maybe over investing I would

argue over investing is not the right

way to explain how I'm doing it but I am

choosing to do nicer finishes that are

going to make the house last a lot

longer be a more durable house for a

rental property so for instance a

standing seam metal roof is probably

going to cost about four times what I

could put a shingle roof on there for

um but the thing is it's going to last a

lifetime I'll probably never have to

replace this roof and if I were to have

to replace this roof from a storm then

I'll probably have a lot bigger things

to worry about so I am going to put on a

14 000 standing seam metal roof next is

insulation 4 275 dollars

so I am choosing to do spray foam

insulation on this house just again one

of those things that's going to keep the

attic in the best condition possible

it's going to protect all of that HVAC

equipment in the Attic yeah so I'm

electing to do spray foam insulation for

those reasons and surprisingly this is a

total of four thousand two hundred

seventy five dollars I'm not sure if I

found a uh needle in the haystack with

this company but they're outrageously

cheap because previously I would have

thought the spray foam insulate this

house it would have cost 10 grand so 4

275 dollars for insulation drywall

material I'm purchasing from Home Depot

for three thousand five hundred dollars

and then I'm paying one contractor to

hang the drywall tape and float the

drywall and then texture the drywall six

thousand five hundred dollars paint I'm

paying one one soap contractor to supply

all the material the paint the caulking

plastic everything and also complete the

paint trade all the labor that is going

to cost six thousand two hundred fifty

six dollars next is trim shelves

carpentry material so

this is going to be just trim 788 that's

just for the baseboards carpentry

material I put shelves Etc a thousand

dollars depending how

crazy I do with the carpentry this is

going to be a thousand dollars could be

a thousand maybe 1500 bucks cabinets are

going to be an expensive cost this is

for the material only nine thousand

dollars

I'm doing European uh

I believe they're called faceless

European faceless or european frameless

cabinets they're kind of a modern

looking cabinet next is door handles and

bath trim 250 bucks this is for all of

the door handles throughout the house as

well as the toilet paper holder and the

towel holders stuff like that 250 bucks

interior doors

three thousand dollars carpentry labor

I'm paying one Carpenter to install all

of the baseboards all of the carpentry

material hang the cabinets install the

door handles and hang all the interior

doors three thousand dollars

quartz

seven thousand dollars I'm putting

quartz on the island gonna do a

waterfall Island also gonna do it on all

of the the cabinet bases as well I'm

possibly going to do quartz for the

backsplash I'm gonna put quartz on all

of the vanities in the bathrooms and

then also I'm thinking about putting

Quartz in all of the I guess the master

shower and the Jack and Jill shower on

all of the walls instead of tiling the

walls I'm thinking about just putting a

a solid panel of quartz up there so

seven thousand dollars I have not

received a bid on that so that could

there may be a little bit of variance

there mirrors three hundred dollars I'm

gonna install mirrors in all of the

bathrooms of course so there's three

bathrooms garage door and garage opener

garage door opener 2 500 bucks this is

for a two car garage door floor material

I'm still kind of stuck on if I'm gonna

do tile and lvp or lvp throughout the

house or what I'm gonna do there but

regardless I budgeted for six thousand

dollars and flooring labor 3 500 bucks

railing

I'm gonna do railing on the stairs 2500

bucks gutters I'm just gonna do about

100 feet of six inch gutters uh for the

front of the house right here because

all of this water running down in these

two valleys is going to Splash right

here on this flat section and with there

being

pretty much most of the water from the

front elevation splashing here as well

as splashing onto a flat surface and

splashing backwards and being Windows

here and these corners of the walls is

just a problematic area so I am going to

put gutters along this front top section

of the house and that is budgeted at 750

bucks landscape is fairly simple I'm

just going to put this rock bed right

here with these five or six wild grass

plants and then obviously I'm gonna sod

put grass for the yard four thousand

dollars dumpster and trash haul off is

1500 budget appliances I'm gonna

purchase from Home Depot dishwasher

range microwave 1750 bucks driveway it's

going to be a ten thousand dollar cost

and finishing up here mailbox 150 bucks

it's how much it costs on the last build

very simple mailbox and we'll have to

pay a cleaning crew to come out and do a

final clean on the inside of the house

make sure everything is clean

house plan prints I've allocated 100

bucks I know I've already paid about 30

or 40 bucks to print six uh sets of

plans but I'll probably have to print

more in the future Water and Electric

this is for the electric cost where

we're setting a temporary Pole where

guys are going over plugging in their

machines and their tools and running

electricity to of course run their tools

that's going to cost about 400 bucks and

then possibly if there's any water used

throughout the build to clean stuff off

towards the end 400 bucks next is we

have two refundable cost one is a mud

refundable Builder deposit of 2500 bucks

that is going to come out of this eight

thousand dollar expense that I paid for

the water and sewer tops and then lastly

I'm going to make about twelve hundred

dollars in credit card cash back rewards

that brings us to a grand total of two

hundred and sixty thousand dollars this

is as you could see some of the costs

were

going to be pretty exact on what I'm

gonna pay because I've already received

bids on from the subcontractors to

complete those trades whereas others

were somewhat a estimation off of my

common knowledge from my what I know

about how much things should cost off of

my other build so

260 000 is what I project my

next build that cost me so if you want

to build your own house whether it's for

a spec house that you want to sell to

start your business or for a long-term

rental investment or maybe for your

dream home then click the link Down

Below in the description to learn more

about the course that I've created to

teach you how to build your own house

also comment down below what is the

number one video that you want to see me

post about my next home build that's

going to be for my next rental property

and make sure to subscribe so you don't

miss future videos thanks for watching