10 year home equity loan questions

[Preston]

This seems like a no brainer for the geographic region you’re working with and being a carpenter it sounds like? You can build a house like that for $150/ft if you do majority yourself l. If you go to a 1500-1700sq ft place that is a 3 bed 2 bath your cost per sq far goes down and your profit goes up substantially. Keep the build simple and give it some nice interior and exterior accents. Do a heloc and pay as much cash you can as you go. Only draw as much as you need, don’t feel desperate if you’re out of cash, you can always draw when you need it and that’s what they’re for. Build slab on grade. Lumber is cheap right now and getting cheaper. You’ll make a ton of money when you flip it. Not a lot to lose if your house and this land is paid for and all you have is 175k in debt for two houses that are worth over a mil combined?

You are correct on your numbers. Yes you can build at those numbers. Im doing a crawl space with i joist. Ive looked into 3 bd/2 ba and I see that a lot of places are being sold that are smaller in size. It seems like a lot of never married, divorced, or live-in mates in our area. I had drawings completed for a 3 bd/2 ba but didn't want to spend that much more and increase my construction time frame.
I most build with icf and go all the way to the wall height at 9'. They are easier on my body and I have a complete wall bracing/scaffolding system for insulated concrete forms. It's a one person job except on pour day, setting trusses, and squareing up, etc. They really make a energy efficient house and strong house in the seismic areas of the west.
I'm going to keep shopping around on interest rates, and I just personally like fixed rates.

 

[Preston]

Im looking at another option called a loan to value land loan through a local credit union. They will loan you up to 80% on the apprased bare land value and you can use the money however you wish.

Term is 10 or 15 years fixed at 8.125. I can refinance into a conventional fixed rate home loan once the house is 80% completed at a fixed rate of 6.215

We own this other property that should appraises for $300-$340k we bought the five acres in 2014 for 75k built and sold off a 1.71 acre parcel in 2021, so its basically horse pasture at this point.

Mu house design for the property in Polson MT is a small 2 bedroom, nice looking ICF house that I can build for under 200k.

Ive been working on the road for a long time and this risk would hopefully allow me to get back into spec houses. Im tired of traveling and working 72-75 hours per week away from home.

Any thoughts or suggestions? I greatly appreciate the feedback. I will have roughly 50-55k in cash, and my wife is working in massage and trying to get a realtor license to hopefully sell this house next summer Lord Willing. Thanks Preston