Wholesale 5 lots with a teardown in one lot - profitable????
I have been presented to wholesale 5 lots, one of which has a rambler on it (that could be torn down or fully renovated). Homes in the area have been selling in the mid to upper 200,000s. The homes that have been selling in the upper 200,000s are atleast two levels and from what I see split foyers.
Public Water and sewage is already connected to each lot. All infrastructure is completed except for road paving, permits were approved and can be re-instated. The site plan is complete and all MD and local transfer/recordation taxes are paid by the seller.
The lots are in Maryland, but I don't want to offer a deal if it's not profitable for the investor. The asking price is $450,000obo. With the number that the homes are selling for (assuming all sold for $275,000) I would assume a gross profit of 925,000. Developers- how much more money would you have to put in to construct the five homes? How long do you estimate it taking? If in the area, or out of the area, would you consider this a good deal?
Thanks in advance for your assistance with this matter. If the response is favorable to this deal, then I will post such in marketplace soon with a google earth photo of the location.
Stephanie