@Jace Holt There are a couple red flags here .

Purchase price: $295,000 Cash invested: $65,000Single family house with a parking lot zoned for another single family home in South Kensington, Philadelphia around Norris Square.

And he is claiming net rev 200k . 1500 square foot.

I'm trying to figure out how much it would cost to build roughly 2400 square feet of new construction from the foundation up. 

I have bids from 3 contractors so far and am getting big variations between contractor quotes.Wondering what the approximate costs are in Central PA region.1) Roof replacement(including front and back porch roofs) is 22 square ( got quotes ranging from 7,000 to 13,000 $) - how much should I expect to pay2) Flooring -  approx 1700 sq.ft of LVP plank flooring after removing carpet ( from 3600$(material separate)  to 7800$( material included)- how much should I expect to pay 3) The home is grounded to plumbing i think ( its constructed in 1960s). 

But he believes that if we would’ve paid 220k for the house after renovations - which is the 130k + 90k then we would square out.

Just make sure it's an accurate comp of course (same square footage, condition, number of beds and baths, etc.)

203K is a good option in the right circumstances but be warned the red tape on these can be the cause of a lost deal in no time flat.

Your ARV is lower that total cost that is a huge red flag! 

What cost per square footage number do you use to evaluate those costs?