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!