Need help analyzing a deal for investment

[Anthony Caleca]

Hello everyone so I live in Staten Island, NY who's market seems very over valued and sometimes crazy when it comes to home prices. To make a long story short and simple, I have come across a single family property right around the block from my current residence and at first glance I think it could be a great opportunity.

Like I stated the house in around the block from my current residences on a beautiful block and great neighborhood, I am very familiar with this area since I live there. Great schools close by, low crime, residential tree lined block with easy access to transportation as well.

The house that is currently there is a complete gut job, it is disgusting which is okay and what I think makes it a goo opportunity. The property is 40X 153 and the lot is 6,100 sq ft total. A lot of opportunity to renovate existing property expend and go up a level, to build a 3,100 sq ft home.

I would estimate construction cost to be around $125,000-$150,000 and the property is being listed as $490,000 (which is somewhat negotiable). I am having a hard time  seeing if the current property is over priced or if this could work out to become a good deal.

Directly next door they just built a 2,464 new construction home on a 4,566 lot and it was just sold for $787,000, and similar listings in the area are suggesting  anywhere from $300-360 a sqft. so even though on paper the numbers work, I just am skeptical on the purchase price being 490k for this dump of a house.

At a quick glance, 490k for property acquisition 20k closing cost, 150k construction cost equals around 660k total investment. (PLEASE LET ME KNOW WHAT I AM MISSING). If comps are trading at 300-360 lets just say a $300 to use the more conservative number, 3,100 sq ft home and $300 per square foot is 930k, which leads a margin of profit somewhere in the upper 200k.

Please let me know your thoughts, PS my farther is a builder so if price for construction sounds cheap that could be why, it will not be outsourced to a contractor,

[Anthony Caleca]

Just an update on some more accurate numbers I put together including cost I was more on the aggressive side when estimating cost and more on conservative side when estimating sale price and price per sq ft.  currently in the process of applying for mortgage

Staten Island NY 10308
Property cost	$450,000	$90,000 down payment (20% down) $360,000 mortgage 3.7% interest
Closing Cost	$20,000
Construction Cost	$150,000	Built in $10,000 contingency fund for construction expenses
Handeling cost	25,000	$2,175 monthly mortgage payment multiplied by 12 months
Total Investment	$645,000
New Project $275/square foot	$855,000	$275X3100 Sqft projected sale price
Broker commision for selling	$45,000	5% broker fee
$825,000
$825,000	projected sale proceed minus broker commission
Total investment	$645,000	Total investment
profits after everything	$180,000	Net profit