Trouble analyzing this possible "deal"
There's a property that's for sale on a FSBO. The guy is an investor and former structural engineer and had originally purchased this property in order to build a new home for his family. When a major illness prevented him from continuing he ended up letting the property sit and now he's ready to just let it go and move on.
The house is on 10 wooded acres in a semi-rural area. You can't even see it from the road. The basement (with 10' walls) is in place and was poured with foam-insulated forms to it has massive R-value. The house is framed, roofed and sided with windows and doors in place. The 6" exterior walls were built with a product that sandwiches hard foam between sheathing boards so, again, massive R-value. Interior is studded out and electric has been run but that's where it ends. The house itself is huge...4500 sq ft upstairs with a 3200+sq ft basement ready to finish (including an 800 sq ft storm shelter under the garage). One big problem is the house has been sitting unfinished for about 10 years and raccoons, squirrels, etc. have destroyed parts of the siding and the foam insulation in the walls as well as parts of the roof. I'm guessing it would take at least $150,000-$200,000 minimum to finish this house but it would be beautiful when done.
The biggest problem I'm having is figuring out an ARV before I even try to put it under contract. Like I mentioned, it's a semi-rural area with few houses and fewer sold comps. A friend of mine lives about a quarter-mile from there and built a brand-new house on 11.5 acres that recently appraised for around $350,000 and it's only about 3,500 sq ft. There's also a 1200 sq ft house on 10 acres that sold in 2013 for $140,000. Then there's the question of finding a buyer (I'd be wholesaling this). I'm not sure if I'd be able to find someone that would want to take on a project this big even if I could offer it for under $150,000.
So what say you, BP-ers? Should I proceed? And, if so...how? He's had it listed on postlets and craigslist for close to 90 days already and hasn't sold it or lowered the price so I think there may be some room for negotiation.
Thanks!