So don't bench mark list price.

Tenants lease expired, so I offered a new lease with a $25 increase. 

If so, roughly what are you spending per sqft? 

Two identical homes located next to each other would come up with the same value, even though House #1 was just renovated to a very high standard and House #2 hadn't ever been renovated since it was built in 1949.I always tried for an identical (or nearly so) beds, baths, sq ft of living area, garage and acres. 

This has been so helpful!

So, in your case, that would be 75% of the 407k which would be 305,250. 

Tim, thank you so much for the thoughtful response here.

I don't have a ton of cash right now so figuring how to do it all creatively is definitely in my priority list.

There are good relations with the neighbor so this likely wouldn't be terribly difficult to pull off, but I haven't ever developed a property from scratch so I would definitely like the opportunity to partner with someone on this to help ensure the success but first I want to finish the smaller property to have sufficient funding available if it is needed.

Christin  So far, you are asking a question that is tough to answer with any detail.