127 acres to build on

[Account Closed]

so i got some new info regarding my last post ( if you saw it)

so this property is 127 acres and the guy got permits to build 39 homes on it.  he said the land on other properties across the street from him are worth 150k a piece.

he said that his property was assessed at 70k per home site of 39 homes to equal 2.7m.  so he listed it for 2m but took off market.

he said his tax bill is 15k a year.

now how am i supposed to analyze this deal from here? did i get enough info?

[J Scott]

Originally posted by @Account Closed:

@J Scott

new construction would sell for 400k.  i dont have a site plan.  i am no builder so i am not too sure but i would say around 330k to build based on buildingcost.net .

2500 sq ft homes

 If you pay $70K per lot plus $330K to build,  that's $400K per house in hard costs.   Add in your soft costs, fixed costs,  infrastructure build out,  etc.,  and you'll probably lose $100K per lot.   

BTW, at $330K build cost and $400K in resale, you'd probably lose money if you got the lots for free.