All Forum Posts by: Alex Gordon

My wife and I just acquired our first deal. A 3/1 built in the early 1900s that has fallen into disrepair over the past 20 years and in needs of a full gut. We acquired the deal mostly for the lot, it’s a B class neighborhood in a growing city, on an excellent street. I am leaning towards demolishing the house and building a simple 3/2 but I have no market data in the city for new builds in recent years. Would the proper approach to our final sale price be based on comparable price/sqft homes?

We purchased the lot for $11,367 and have a $125,000 line of credit to rehab or build new. It is in the city of Cambridge Ohio, a little over an hour east of Columbus. I am a contractor by trade and understand the costs/processes to build, but I am lacking in how to determine a proper sale price with little data. 

Thank you for you time and help