Thursday the rain stops , so I dig down and find the well ( its old style with a sanitary cap seal and its buried 2 feet down).

@Ava G.Yes, run.Also remember that the 1% rule, and all other "rules" are only good for a back of the napkin evaluation.

That's the back of the napkin calculation.  

You also want to get a feel for what a hard money loan will cost, because that will determine if a deal even makes sense using HML When you go to look at property you can give HML a back of a napkin a gestimate and they can tell you what they think.After you do your due diligence you can give more accurate numbers.Your arrangement with GC is really between you and them.

A contract on a napkin will work for them, but if you want to get technical then I don't know.

@Eli Gilbert To answer your question, a good back of the napkin formula is 75% of ARV.

My partners & I have some knowledge & experience with both Developments & Conversions, as well as Acquisitions of Self Storage.So, yes, there are certainly quite a few moving parts that could be at first glance, complex and overwhelming, but we can explain it quite simply and even help you with back-of-the-napkin math to see if it all pencils out.  

These are all great ways to get a quick back-of-the-napkin estimate which is just what I was looking for.

Are the lots level, rock excavation/blasting required, road construction, strom sewer, water, sanitary sewer, electrcial, local impact fees, etc.

Back of napkin numbers he's overpaying on this deal by $10k or so.