Deal or No Deal? Wholesaler Newbie...

[Chelsea Nichols]

Hi guys! Thanks in advance for reading and responding. :)

I'm new to wholesaling and believe I have found a lead worth following. I found a FSBO home on Zillow that has been listed on and off for the past 5 years. The home is one of the last standing original properties (built in 1930) in an otherwise gentrified neighborhood full of new/new-ish townhomes priced in the mid $300k-400k range. I figure its probably unlikely that no one has approached this owner about purchasing his property, so he is likely watching the gentrification happen and hoping he can sell at the highest cost possible. He has listed his property between $295k-$330k over the past 5 yrs. The home is definitely distressed and would be a full tear down. However, it is on a triangular lot of about 5800 sq ft. The new townhomes in the area have been built on lots 1/3 of the size which leads me to believe a developer could potentially build three homes on this lot selling at $340k plus totaling $1m plus in sales.

I want to reach out to the seller, but want some feedback first on if this is a good deal. There are no real comps in the area since his home is one of the last of its kind standing. Ideally I can assign this house under contract for $275 max. Seller is asking $330k. 

Looking forward to the community's feedback!