There is the possibility of (much) bigger holding cost, and the opportunity cost of deploying the money in better ROI projects.But if OP has many rehab projects under his belt, new construction is the natural progression.

I never said the property would sell at that price without assessing the property, I'm going by what your saying about it. 

Learning is progressive.

I decided to look for another service.I did an assessment of several that are out there.  

Just because a property owner has neglected to pay their mandatory HOA dues or has unpaid HOA fines doesn't mean there is an issue with the mortgage or assessed taxes. 

I went into the deal not knowing too much and not assessing how the investment would produce, since I was very new to the concept of buy and hold real estate.

Divorce is in progress and I will need a project to keep me busy once she gets prime custody of the lil ones.

How do wholesalers accurately assess rehab costs?

It's a great question, but at the end of the day, you would assess deals using the same guidelines whether it's July or January. 

The house is assessed by the county at $125,000.