What actually happened was that he found stuff during the rehab that he couldn't see either during the walk-through's, his original estimate was within a few thousand of mine, once we closed on the property, the demo was delayed by more than a month because of other projects he had been working on.

Biggest need right now is a kitchen contractor for the fix and flip, starting from an empty (already demoed) kitchen.

Demo, drywall, MAYBE framing you can squeeze the subs for 1K. 

Demo is half the job anyway.

The house was demoed and wide open and they recently got a bid of over 100k to finish it out. 

Convert the property which was originally a 2/1 single-family property to a 3/2 single family (complete interior demo, remove the garage, new HVAC system, framing new rooms, new electrical wiring, new plumbing, new flooring/walls, new siding and paint, new roofing, landscaping).

@Frank Yang Thank you sir!

@Frank Yang Wish it was that simple 

If the existing building really can't (or shouldn't) be saved, then the value of the lot should be that of a comparable lot, minus the demo costs.When comping to other lots, be sure to include size, utilities, zoning, location, views, surrounding attractions / annoyances, etc.You'll maximize the value if you get some of the permitting out of the way before selling.

We've done one buyout deal (similar to a wholesale), are about to list our first full renovation flip next week, and are just finishing demo on our second flip.