In July 2021, Reddit user Next_Operation_8049 embarked on an exciting new chapter by purchasing an empty plot of land. What followed was a whirlwind of preparation, planning, and hard work, culminating in the placement of their new home by August 2022. They managed the entire process, from navigating the complexities of permits and easements to setting up essential utilities like electricity and septic systems. This experience has given them a wealth of knowledge about building a home from scratch, so they took it to Reddit and conducted an AMA (ask me anything). Here’s the summary:

Breaking Down the Costs and Financing

One of the first questions they encountered was about the financial breakdown of the project. They financed the land purchase with a standard land loan, requiring a 20% down payment. Subsequently, they rolled the remaining land cost into a construction loan covering the house and improvements. Here’s a rough breakdown:

• Land: 20%
• House: 50%
• Improvements: 30% The total expenditure for land, house, and improvements was around $350,000. A crucial lesson learned was the need to consolidate financing; had they known that a construction loan could cover everything from the start, they would have avoided paying closing costs twice.

Challenges and Triumphs

Managing the project while working full-time, planning a wedding, and living in a trailer to save money was no small feat. The most significant hurdle was dealing with their well, which unfortunately went dry after the initial drilling. This setback necessitated additional costs for a storage tank and a deeper well drilling. On a brighter note, they eventually resolved the issue and now have a reliable water supply.

Funding Improvements

To manage the substantial costs of improvements, they rolled most expenses into their construction loan, with site prep and some road work handled by Next_Operation_8049 to cut costs. However, they paid for the septic system out of pocket. Anyone looking for a similar project must factor in all potential expenses and explore financing options that suit your needs.

Advice for Future Builders

Next_Operation_8049 shared that if they could do it all over again, one significant change would be to avoid scheduling a wedding at the same time as the construction project. The pressure to complete the home for the wedding led to rushed decisions, particularly with the well drilling. More time spent choosing contractors could have avoided some of the complications they faced.

Community Questions and Answers

Q: How did you handle utilities?
A: We used a neighbor’s easement for underground power, costing around $20,000. For the septic system, we paid out of pocket.

Q: What was the total cost?
A: The project costs approximately $350,000, including land, house, and improvements.

Q: Where did you get your home?
A: We purchased from a manufactured home dealership and made several upgrades, including a larger layout, higher-rated windows, and better insulation.

Q: How about internet access?
A: We use Starlink, which has proven to be an excellent option for our remote location.

Building a home from the ground up is a rewarding yet challenging endeavor. Next_Operation_8049’s journey from empty land to a fully functional and beautiful home has taught them invaluable lessons. If you’re considering a similar project, hopefully, their experiences provide some guidance and inspiration. Happy building!