Can I Really Rebuild a 2 Bed 1 Bath Home for $45k in Bakersfield, California?

[Emmanuel Ola]

Hello All,

I just secured a 0.4-acre lot with a burnt house on it in the Bakersfield, CA area. The burnt house measures roughly 550 sqft, with 2 bedrooms and 1 bathroom. The burnt house will be demolished, and the foundation will be used to reconstruct a new 2-bedroom, 1-bathroom home.

I have a builder I have worked with on other smaller jobs, like concrete work on my house. I have also referred him to my friends and he did a great job with their concrete as well. I took him to the lot, and he said he would be able to rebuild for roughly $45k after I negotiated down from $65k. Given that many people have said the average price to build in California is $200 and above per square foot, I became worried.

Do you think building a 2-bedroom, 1-bathroom home measuring 550 sqft is feasible at this cost? If I go with this builder, what necessary actions should I take to ensure our contract is binding in case he defaults? I will appreciate all suggestions.

Thank you.