Owner Builder $92k Side Hustle 

what jobs best left to contractors ?

@@johnwhite2576 Id say foundation, electrical, plumbing, insulation, drywall. But its different for everyone depending on your skills and time available

Great to hear. Wish you the best of luck!

If you don't mind me asking in what state/city did you find a lot that cheap? Is it relatively close to schools/other amenities? Rural or urban?

Amen, I bought my piece of freedom 4 years ago and have been saving to build my home

@@alexeylozin7443 check your city. Some may have city own lots that may sell it for under market value. In northern Ohio city, an empty city lot is about 40k (asking). City lot I looked at is 4,000.00

how did it go?

So glad you liked it. We have a complete online course at Open Book Build on how to build your own home if you are interested. Thanks for watching.

Armchair Builder if you don’t mind me asking. Does the course include all pre-project steps and costs? Does it have step by step breakdowns from start to finish of a project?

BaLLa The course takes you from how to select a building lot through to move in. It covers how to create a budget for your new home, how to find subcontractors and get competitive pricing and then covers the build schedule with important quality checks. You follow along as a home is built from the ground up.

Armchair Builder Nice. This is Great!

Honestly, the foundation and frame work I'd hire professionals if you have no one to help and you've never done it. Basic wiring, drywall, installing cabinets, etc isn't hard and there's hundreds of videos to teach you. Just doing the basic work can save you tens of thousands.

I agree. I do the same thing but flip instead of building new. I get to live in the house as I work on it. That's sooooo much cheaper than a new build and the profit is just as good, maybe better.

So you make it sound like finding the "great" GC is so easy to determine. As if you should just select the high bidder and be done with it.

@@MrSteeDoo - It is simple. Do tons of research and don't be a cheapskate when you see that the good contractors are also the contractors who are compensated for their high skill and knowledge level. If you thought that I was trying to say that finding a great GC was going to be a quick and easy process, then I apologize. Perhaps you should pick the cheapest contractor because you can learn enough on RU-vid to pull off your new house project. Or, maybe not. Cheers!

Alot of couples get divorced after a build...I am a GC in SF bay .

@@glynowilliams Why involve the wife with a build that's not intended to be the dream house. If you want to build your own house, do it without her involved. Her input will put you way over budget and make even the smallest decisions seem like a tug of war.

@@glynowilliams I got divorced over a remodel. So that's another plus. Life is so much better now. Back to having fun remodeling.

What state? That is not how it is in CA.

@@KetoKevin MN

I believe most rebates are by state. Also they might not qualify for rebates since your just building to the new code. I'm not sure since I haven't built my own from scratch yet

That’s a great question. I believe if it’s your primary residence…yes. Probably need to dig into the ridiculously complicated tax code to verify for sure

no

Yes...after certificate of occupancy has been issued

@@OpenBookBuild : thanks. Regarding tax saving if we sell after living for 2 years, we. Don’t have to pay fed tax for $500K. Is the total sale or the profit we get after paying the pending mortgage

@@squeekhobby4571 You don’t pay tax on the profit...which is final sales price minus total cost to build plus land cost

@@OpenBookBuild you are awesome. God bless you for your service

@@OpenBookBuild curious where you came up with the $93k number if $250k per person is the actual.

Hey Brad. Yes, the two years starts at time of occupancy as your primary residence.

Try State Farm Insurance next time as they provide builder's risk and general liability up to $2M at very affordable rates for someone building their own home. Local banks that you have a relationship with are the best...or try one of the owner builder loan companies if available in your state. As for selling the house, Redfin offers the best deal now...check it out...if you buy and sell with them it's 1%. The mess isn't required but if you want to live in it while you do the finish work it's really no different than buying an existing home and remodeling it while you live there. Tons of people are doing that right now...stop by Home Depot or Lowe's on a Saturday and you'll see them. No, building your own home as the general contractor is not easy, but smart folks are doing it and making very good money. Take care

@@OpenBookBuild is there a minimum requirement of years to live in the house we built before selling it? Thank you

@@r.a.5625 Depends on your state law. Some locations do require you to live there a minimum of a year.

@@r.a.5625 Generally one year. Depending on the municipality. For better or for worse, this rule is basically an attempt to stop someone from acting as an unlicensed contractor. But the rule is rarely enforced, as municipalities would have a difficult time preventing someone from selling their house.

"banks wont loan to owner builders" Of course they will. A mortgage broker can find the money. You don't need ALL banks to offer financing, you just need ONE.

Hey I do this in Florida with my properties. To get a temporary power pole you have to have 1 septic 2 sewer 3 rv special exemption permit 4 50amp power will be ran

@@matthewmoore202 any one of those? I heard you can get it with a building permit, or for irrgation permit for a well and pump only?

What county? I can possibly help if I know which county

Steven, it really depends on where you live. Most places allow it but check with your local building department.

Of course you can. You own it. But your proceeds from the house will be taxed as if it was ordinary income.

It’s not of course . Ca requirements is 1 year

Don't think so. The house has to be your primary residence

no

You can do it every two years

If you are building an affordable home like this one in today's crazy undersupplied real estate market where multiple offers are common, selling is the easiest part about this. So, many owner builders also choose to sell their own home and save the 6-7% commission.

@@OpenBookBuild as an owner/builder/flipper this is a horrible idea. If you really want to sell your home yourself become a licensed real estate agent, and take the time to learn the trade. That is what I did. FSBO’s statistically loose more in equity than the RE fees would had been as a result of not being on market. Most builders/homeowners have no idea how to effectively market a home, create ad campaigns, target out of state buyers, farm local markets to procure buyers, or how to create beautiful presentations that pull buyers in. It’s really an art. A fraction of buyers will see your home because agents avoid FSBO’s like the plague. Typically most first time home buyers work with an agent as they have no idea what they are doing. 51% of the market is first time home buyers. This just eliminated over half the pool of buyers because buyers that are working with agents are locked into buyers agencies as agents don’t like wasting their time. So unless the buyer wants to pay the commission out of pocket, they are just going to go with a home that is on market as sellers pay the commission in this scenario. Agents know good and well they are going to do the job of a buyers agent and a listing agent as homeowners typically have no idea what they are doing as far as the sales process of their home and they will usually make less than they would if they sold a home that is on market. Anyone is free to do what they want but this isn’t something I would recommend. It would be a better idea to get licensed. Not to mention you can also make a ton more money by taking on clients if you decide Real Estate is something you enjoy. I got my license just to sell my flips and spec homes. I ended up taking on clients and it has turned into another career making over $100/hour.

@@justinharper2614 I totally agree that owner builders should learn everything they can about real estate marketing and sales. But I would disagree with you that people selling a first time buyer home needs a "professional" to help with the sale. The Open Book Build house has had many offers from people wanting to buy it...even though it's not even for sale! Why? Because there is absolutely no inventory of quality, affordable homes in the area. And this is the theme I hear over and over again from folks around the country right now. Some quick tips for selling...get a quality title company to handle the transaction that can provide a contract that meets state requirements, list the property on one of the many online platforms using high quality photos, price the property competitively with recent sales in the neighborhood. I've heard real estate agents tell people they can get you more for your home if you list with them. The problem with the entry level home is, the appraisal will only match current market pricing in the area. So, if the selling price is over the appraised amount, first time buyers either need to come up with extra money at closing or they walk away. And the nature of the first time buyer is they don't have a ton of extra cash to spend. If this doesn't work, start offering a 2.5-3% commission to real estate agents who bring you a buyer. In this case, you will still save 3-4% and get your home sold more quickly.

@@justinharper2614 I think anything that cuts out useless middle men is a great idea. There probably wouldn't be ANY real estate agents if they actually got paid by the hour and not screw you by commssions.

@@justinharper2614 Let's be real. Most agents just have pictures taken and pop it onto the local MLS and then sit and wait for the phone to ring. As a former real estate agent, I think it's a massively over priced industry. In the UK you get similar service for 1%, but they don't have buyers agents. I do believe buyers agents add value, but I don't know what the best solution is for their compensation as they usually do way more work than the listing agent. Perhaps, 3% fee. 1% to sellers agent and 2% to buyers agent?

Not an accountant or a financial advisor but not if you live there for 2 of the last 5 yrs. Do your own research. It's easy to find.

I believe the point is that it's a capital gains, not income. The capital gains exemption for primary residence is the loophole.

That was deductible property taxes

@@willbass2869 no. Trump lowered capital gains from home ownership from 500k profit down to 250k.

@@Willsimp4tacos yeah but didn't he put a cap on deductible mortgage interest & licsl property taxes? That's why NY, NJ, Conn and CA millionaires so pissed at him. They couldn't fully deduct all their mortgage interest and property taxes, right?

@@willbass2869 I didn't know that. It seemed odd that his changes hurt real estate investors when he is one himself.

Americans, historically speaking, cherish freedom. There is no greater assault on freedom as to someone taking your hard-earned money.

Who said we're scared?

Why? The owner is putting the time and effort in, instead of paying someone else to do it. It's like installing your own laminate floor but on a bigger scale.

Everything in the world that is man made is meant to generate profit. Thru trade of ones time or monetary investment. You go to work, why do you expect to be paid? The business owner just needs work done why you demanding pay and sht, makes me sick

Ignorant..