Raze and Sell or Rebuild?

[Account Closed]

Hi all

I have a property in a beach community in Massachusetts which I want to move on. The price is 70k, and its in really bad shape. Houses in the area sell for 400k.

I think the best course is to level the structure down to the slab. I have to keep the slab in place because the town doesn't allow this type of use in this area anymore as new construction. But if the slab stays I can rebuild.

I've been quoted 8k to have the home (its really just a shell) totally demoed and all the debris hauled out of my life.

Im wondering if I should just demo and sell the lot, or if I should try to partner with a contractor who will build a home which we will sell then spilt the profits with him.

thoughts?

THANKS!

[Joshua Houchins]

@Account Closed there are several questions that must be answered to give you a correct response.

1. What are comparable lots selling for?

2. What is cost per sqft to build.

3. What is the average price per sqft for new homes going for in the area?

 Also I do a lot of tear downs and hire a GC never do a profit share pay the GC a flat rate and you pay all the subs and buy all material will work out a lot better for you! I pay 25k per house just to mange. 12500 rough in 12500 upon co. 

I'll give you an example here I can by a tear down for 250k rebuild for 250k and sell for 750k

So you get 250-250-750.  Obviously the lower the land  / tear down price the better.  

So in you case if resale is 400k ---80k lot and tear down---you could really not be in the house for than 175k construction to make the deal work.  Hope that helps good luck!