Rebuilding After Tearing Down an Old House

[Dakoda Spencer]

Hello BP family,

I have a question. I have been going around and looking at houses in my areas. The numbers look great on them until I walk in and see all the structural issues. Instead of simply dismissing them completely, I want to know what I would need to do to tear them down and rebuild in the existing lots. 

If someone could please spell it out for me, I would really appreciate it. 

One of the houses I looked is an REO, asking 50K, would be worth about 140K with a 3/2 on it. It would cost about 80K-95k to build a house to match the neighborhood houses. I know I couldn't give asking price. But, how do I come up with my asking price for this place?

I am unclear as to what my financing options are for this type of project. Is a HML an option? I would just like to know all my options that aren't so obvious (eg. cash and private money).

Thanks all!

Dakoda