When my youngest, Michael, that's now 27 was little we ran our construction/real estate development office at our house. 

It appears that the new construction cannot keep up with increasing demand, causing bidding wars and such making it that much more expensive for new home buyers and investors.  

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.