When I used to work construction, there was the whole range of people: Frugal/thrifty people that drove older cars/trucks and people who always "needed" a brand new truck.

Howdy, My background is in architectural engineering, commercial construction, and I can evaluate a building condition.     

The cost per sq ft is not accurate enough to kill the deal.It is used, as you are as a starting point for consideration.I suggest getting some hard numbers quoted on the big ticket items ie, HVAC, plumbing , and electrical and the rest is relatively cheap.Pricing per square foot works better with new construction, anything can happen in a rehab.

I am a construction worker in NY and get laided off most winters for 1-2 months.If i bought a small multi family 1-3 units would i still be able to collect unemployment during my layoff. 

I specially like highly distressed value add properties since I also a partner in a construction company and we do all of our own work.   

Regardless of what I had I felt more comfortable with the construction business.  

So it's been a few days since I've taken the time to invest in writing on the posts...so for those interested in the numbers on this deal, here goes:The list price was just under $600kMy first offer was accepted at $200kMy two partners and I each invested $20k to purchase the property (1st mortgage)We took a second mortgage of 5-years for the construction (rehab) loan totaling $250kCounty assessed the property at $750kThe fair market appraisal was $450kWe developed a 3-phase rehab of the property which included p-1 to replace parking, repair all roofs above spaces less than 6,000 sq. ft.

Regardless of what I had I felt more comfortable with the construction business.  

But I have also done new construction and flipping, both commercial and residential.My wife and I ( + 1 yr old kid) are thinking of moving south to get away from the Chicago weather.

There are many posts on BP with differing opinions.For what it's worth, here is what I use:A = relatively new construction in good school zones with high rents and white collar tenants.