@Joel Owens I have lodged a soft protest with the bank about the appraiser' assumptions.

It's just about the worst firewood and if somebody wants to mill soft wood then they'll just cut down a pine with a 30ft straight trunk.I don't know much about chinese tallow but some people make bowls out of the wood.... still sounds like it'd be hard to find a buyer.Still... if you've got more time than money you can call around.  

The economy still seems pretty soft in my area so I'm worried about building it and getting stuck with it.How do you estimate construction costs?

So other than the demolition, this is pretty much a spec house new build.Purchase price: $365k, which includes:all building permits and school feesdemolition costfoundation only (raised floor setup), garage concrete floor & driveway are not doneLot size: 7400 sqftNew house size: 2854 sqft + 475 sqft garageBudget in a nutshell: Land & soft cost: $365kRest of the cost (construction, holding costs, commission, etc...): $435k - $535KSale @ $350-$400/sqft ==> $1.15M - $1.15MProfit: $100k - $215k+ Time line Overview:9/13: purchase10/13 - 12/13: finish foundation piers1/14 - 5/14: Underfloor plumbing, subfloor6/14 - current: Framing, Rough of all trades+ Notes:Big gap in times dues to lack of funding, and interferences with clients' projectsAll plans are final, no adjustment/modificationInspections are all done.  

I imagine condo prices are soft while these assessments have been pending.  

A few flips ago I had a 1200 soft condo that had been smoked in 30+ years.

@Peter Crabtree  OK will have to start taking my fly rod with me when I venture out your way.some how I think of that area as bass country.. or strippers... catfish etc.

In fact, the high end market has been getting soft since the fall of last year while the mid-end is holding steady, and the low-end is still thriving.The LI for CA has turned down quite sharply compared to several months ago while the Silicon Valley economic index is rounding out the top.

There is a 100-150k difference in price between selling a 2/1 into a 3/2, IF you spend 70-100k on an addition (hard and soft costs), may it be up or extension, there's the 30-50k upside.

@Eric Barnett if the rate is 1.75% above prime then that's soft money.