Nick,
In my previous life I was a carpenter, I built a lot of homes, mostly custom stuff in Tahoe, a couple out East, also did a stint as a construction coordinator with Habitat, taught construction classes at the community college to people like you and your fiance’.
First off, you will not save money building a house. A new construction will nickle and dime you to death, as well, you will put a huge, huge, huge amount of time into your house both because it’s yours and because you aren’t a pro.
Second, without a “crew” to help you, there are things you will not be able to do solo and asking your fiance to be on the other end of the board is not a good idea. Even if both of you are even keeled and easy going, it will not be easy on the relationship. If you don’t believe me, I can give you my wife’s cell and you can call and ask her :o
So, without a further ado I give you the “shell home”
What you do is contract with a local builder to do everything done from permits to drywall, so you won’t need to rough the electrical or plumbing or HVAC. Get them to hang the drywall, do the roof, windows, doors and siding. You get the fun stuff, finishing drywall, painting/paper, fixtures, cabinets, tubs/toilets/showers, and off course the landscaping.
The best part is that you can pick and choose all the stuff that matters to you, what you’ll use and appreciate on a day to day basis, what you did with your own hands is the visible stuff, and it’s stuff that can be done bit by bit, regardless of the weather or time of day.
It will also be easier to get estimates on this sort of job than a turn key. Turnkeys always bother me because they cut costs of fixtures and shortcut finshing as time/money gets tight.
Oh, and take a look at the different systems you can use to heat/cool your house, the are some great options that can be paid off over time such as geothermal. If you live somewhere cold, consider a heated slab, or even just heated tile floors in the baths, your wife, I mean fiance will love you for it.
I’m also a big fan of instant hot water systems, we use a 220 set up, it’s kinda fickle, better bet is gas if you have it available.
Oh, and maybe you noticed that I skipped any mention of rehabs, well there’s a good reason:
On a rehab you have to unbuild and rebuild, so it takes a lot longer, but worse is you never know what you’re gonna get and it almost always suprises you in some not so good ways. I have done a bunch of rehabs including the one we live in now, talk about a money pit!