Is it cash flow per square footage, Net Operating Income potential and Cap Rate?

Bought a townhome which the broker stated had a certain square footage.

The square footage is around 900-1000 sq ft, but the lot size is decent at around 6900 sq ft.

If I am not mistaken (and please check with your tax professional), if you have a space in your house that is only used for your business and only your business, you can take that square footage divide it by the total square footage to get a %.

If there are comparable houses in bedrooms bathrooms and square footage that have closed in the last 6 months take a range of prices (150k-210K) and figure that the project will sell at the low end.

Jon,Yes I am working with broker, he provided nice graphs comparing different metrics, sq footage, price per unit, etc.

AC unit - water heater - I would not bass the renovation price off the square footage.. .

@Andrew Vincent  Items to watch for:Take a flashlight with you when you view the property - spend plenty of time in the basement (crawl space) as if there are foundation issues, plumbing issues, etc. this is where they usually can be seen.Properties on high traffic streets sell slower or for a lower ARV (or both)Bigger is better (more square footage, more/larger bedrooms, larger kitchen, more baths, larger yard, larger closets). 3BR's typically sell better than 2BR's. 

Square footage may come last.  

http://www.gsfahome.org/programs/platinum/overview.shtmlIt's also pretty hard to find a deal in SD, so I'm considering adding value to a property through an FHA 203K loan, such as taking a 2br property with enough sq footage and adding an extra bedroom.