The more you increase the size of your construction operations, the more it costs per square foot.

There is an active listing with similar square footage (but all above grade) at $325,000 and it hasn't moved in over a month.

Ok guys so i went to go see the houses and the investor was unable to accompany me so i had to go alone, here is the info.House 1 :  2bed 1ba , 448 square feet ARV 150kRepairs Wasn't able to get into this one the realtor said they changed the lock box.

No problem, 2200 square ft. house in northern Bergen County.

The total square footage for the house is 3857 sq/ft.  

Estimating the renovation is the hardest part in my opinion, there are calculators and prices per square foot for each different job, but I have found the actual costs to vary significantly.

A few nuances here related to the numbers:List Price: $449kFirst Offer Received Buyer X: $465k w/ $95k down (with appraisal continency) Final Accepted Offer from Buyer X: $480k w/ $48k down (appraisal contingency removed)Bad Appraisal: $440k (should have been appealed with ROV due to errors but buyer declined; average age of comps was 11.5 months and no inflation was added to adjust values, also appraiser used incorrectly small square footage)Buyer's Original 90LTV Loan: $432k ($480k w/ $48k down)Buyer's "Final" Loan Application: ????

We can find a stable 5 cap in Rittenhouse Square or drive a mere 2 miles into North Philly - for example - and easily get 15 caps, albeit much riskier.

When finding comps make sure that your comps are within a few blocks (Philly is very block by block specific), within 20% of your finished square footage, similar bed/bath count, and also a rehabbed property.

How could some possibly build a full unit, I am assuming is around 800 sq foot for free?