Construction load

[Johnny916]

Hi, I am going to start building houses for other people. Basically I want to start a construction business because my dad is a general contractor and he is retiring from the company he is working for. I was wondering how much profit there is to be made building just average sized houses.

We can do all plumbing and electrical ourselves but will have to sub contract out most of the rest.

Can somebody please tell me if it would be worth our while to build for other people?
I live in a really hot real estate housing market place, SACRAMENTO CA

[Rich]

Profit / margin is typically estimated at around 10-25% depending on size of the project. An average home is going to be around 2000sf at 100 / sf. That equates to an average of about 35000 per home. Smaller homes will have more estimated percentage of profit and larger homes vice versa.
Now your question falls back on you - can you build efficiently and fast enough to where 35000 per home is profitable for you? If it takes all your man power for 6 months to complete a home and you make 35000 your company will make about 5800 / month.
Yes there are profits in building homes if you manage your business well, if you keep warranty calls to a minimum, if you have no injuries, no law suits, and bring projects in on time and on budget.