Add on flip

[Wesley L.]

This is probably going to fall under the category of need more info. I've rehabbed multiple houses but have never added on. Wondering if my ballparks are even close to making sense.

Listed price: $300k, 2/1 1100 sqft.. Big lot.

Neighborhood comps: 500-600k for 3/2 or 4/2, 2000-2500 sqft.

Plan is to use conventional financing, 20-25% down. 3/1 or 5/1 ARM.

Add 1000sqft at $65/sqft. Hire GC and subs to do additional foundation, frame, roof, wiring, plumbing. I do the finishing. Plus additional 25k to update kitchen and bathroom.

To summarize using easy formula:

0.7*550000-90000 = 295000 which is pretty close to list price.

I'm a cup half full kinda guy and these numbers seem to work. I'd like to hear the cup half empty point of views.
Thank you!

[J Scott]

I don't know where you are in California, but I'd be surprised if you can get much for $65/sf. Foundation up additions here in Atlanta are $60-80/sf, and things here are less expensive than pretty much any place I've seen in the country.

I generally base major addition prices off new construction prices for the area, and in most of California, you're looking at $200/sf or more for new construction.

Perhaps @Karen Margrave can chime in...she builds in CA...