How to determine the cost of New Construction
Hello everyone! I'm a young investor here in Chicago that's been actively looking for a great deal to start my first fix and flip. I've done the ground work of establishing a solid team of agents, contractors, attorney, and lenders that'll fund 100% of my deals. But I've recently come across a property that the owner wants to sell with a 4300sqft lot included. I'd like to build a single family home on this lot (located in bronzeville Chicago) and make it 5bds & 3ba 3500sqft. There are other newly constructed homes on the same block with similar square footage as well as the same number of beds and baths. My question for you guys is how do I determine how much I should pay for the lot? And then on average how much per square foot should I expect to pay to construct a new home with those specs? FYI: The new homes on that block have sold/selling for approximately $500k each.