What is the Formula to use when considering developing?

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Hello,

I've been hanging around the Rehabbing forum a lot lately, but for me, I will most likely be involved in a single family detached house development. I will be looking out for an older house on a good sized lot in an area where new houses are going up and plan to build a new house on it.

My question is, what formula do I use to consider if the house is a worth while project to undertake? Do I use the same formula for rehabbing which is 70% ARV minus expenses? Or is there a different formula to use when doing an entire rebuild project?

Thanks for the help!
Aaron