When estimating a budget that has been completed without a permit one has to consider that each subcontractor is going to have to come out initially (1x trip charge) open up the walls (demo cost) undo whatever has been done incorrectly & redo everything over again. 

This would require some demo work and I would not be able to get as high of a rent obviously and it would reduce my ROI. 

I have begun some demo as I started to work out the details but am thinking I should stop until this is finalized..

You never know what you will find when they start the demo process.

Thus...usually for our flips, Demo starts fist... so we'll pay in this manner:DEMO BUDGET: $6000- to start: 33%: $2k- progress payment: 33%: $2k- complete: 33%: $2kFLOOR INSTALL: $8000- to start: $2600- progress: 2600- complete: 2800this way you eliminate any grey areas, and usually contractors save so much for the end, and if you pay against the total, the budget will go through the roof!

Anyone have experience doing a complete demo of a house for the land?

Get a stainless one if you don't already have it so it matches the stove.Add a dishwasher - also stainless to match.Consider demoing and replacing the tile backsplash to something more modern.

Is the notion of rookies taking on a demo and build-out of new construction again too ambitious?

One that is a week away from being listed, one we just started demo ooh this week and two others that’s waiting.

@Zachary Negron No matter the condition, there's almost always a price at which a purchase makes sense - even if the home needs a complete demo and ground-up build.