HELP! I know ZERO about new construction - If you have a piece of land suitable for 10 townhomes...

[Wendell De Guzman]

I have not done new construction so I need the help of developers out there.

I have this piece of land suitable for development of 10 townhomes. Each townhome in this nice suburb of Chicago can be sold for $650K or even more. I can get the land for $1.1M. I don't know...

1) the cost of developing the land
There is an old house that sits on one part of the land so I assume it has utilities/sewer lines

2) the cost of the building - for high end townhomes, should I use $100/square feet or is that too low

3) what will be a typical ROI that you will say "Yes, this project is worth it." If I assume $120/sqft as total cost of developing the land and the building, I have a 37% ROI. Is that good enough to take on this risk?

4) what other things should I consider?

Here's a schematic of the site plan: