2 Properties 1 Price

[Kevin Burns]

I recently came across a 4bd/3ba that is next door to a Church(Church looks like it was converted from a house). The properties are being sold as one. The Church sits on 2 lots. The 4/3 could use a rehab but it's a solid home. They're being sold at market value so obviously the price will have to drop. I'm thinking of just doing a demo on the Church and building 2 new homes (I know it sounds horrible but it really doesn't look like a regular Church) I would rehab and cash flow on the 4/3. Is building new homes completely out of the question considering I won't be able to get the land for fairly cheap? Is there a general rule of thumb on land price/percentage for constructing new homes? They're asking $550,000 for the 2 properties on 3 lots. It sounds like they're willing to negotiate, I'm just waiting on the comps from a realtor buddy of mine.