Need guidance on 4+ acres in southern New Jersey

[Raphael Braschoss]

My Wife and I purchased a 4+ acre property with a 1930’s 3 bedroom, 1 bathroom, 1200 square foot house and a large wooden workshop.  The house is in pretty rough shape and we are trying to determine if it is worth rehabbing or if it is better to tear it down.  The house needs a roof and the existing roof is very old asphalt over cedar shake so according to the roofers they need to completely remove everything down to the rafters and install 5/8th inch plywood then reroof from there (one estimate so far came in at $31k for that).   The house needs all new electrical.  Estimate there to rewire the whole house with 200 Amp service is $15k.  The existing forced air HVAC apparently has the ducts routed incorrectly (they come out in the inner parts of the rooms not along the perimeter of the house).  We have the house down to studs but are starting to think it may be better to just tear it down and start fresh.   

With a large property we think we can subdivide into four slender one acre lots and build 4 single family homes.   The land is in Deptford, NJ.   

Does anyone in the area have any info or war stories they can share?  

Remodeling is a more or less known quantity for us - new home building is not. 

Thanks in advance!

[Jessie Dillon]

i see a lot of people (outside CA) using ~$75/squarefoot for a gut renovation. If you parceled this off, sold the vacant lots, and sold the fully renovated property, what would you walk away with after spending 75/sqft on the rehab + holding costs?