Is a tear down/rebuild a good investment opportunity in St Louis?

[Kristie Hurst]

I'll try to summarize as much as I can: we are investors in training and also new neighbors to a builder who is doing tear down/rebuilds in St Louis. This is pretty common in our area as there is very little open land available. We are considering going in on a deal with him to purchase a property at 500k, rebuild cost roughly 700-800k then will retail around 2.1 M. We would front the property purchase, he would front construction cost and we haven't discussed profit split yet. Seems like an opportunity but want to be well informed before making a decision.   Any feedback is much appreciated.