Rehab, Flipping, and Costs

[Diego Hernandez]

As I am filtering among a list of properties to invest in, I am trying to rule out properties that are “clearly” not worth looking into.

Is there a rule of thumb for calculating the cost to tear down a building ($ / sq. ft)?

What are the parameters for this number and how does it change with respect to a change each parameter?

For example, how many additional $/sq.ft. does it cost for houses that are older than 1978, smaller/bigger than X sq. ft., class A/B/C/D buildings/zones, etc.

[Justin R.]

@Diego Hernandez In my neck of the woods, the last time I cleared a lot (2018) was a flat site, 1000sf house.  It was about $600 in permits, $800 in utility kill (assuming you're going to rebuild there and Class A street work is completed in your rebuild), and $12000 in labor and dump fees.

This was for raised foundation (cheaper than slab), no garage, very accessible lot for working space, urban location (less hauling distance), and taking advantage of recycling credits for C&D waste.  And, this was handled directly with the subcontractor (meaning, no GC markup and I take care of the legwork involved with permits and utilities).

I would guess the prices vary significantly based on location - labor costs and environmental regulations would have a huge impact on this.  I have no data outside my own area.