Rental Property Investor · Fort Lauderdale, FL · Member since 2018 · 40 posts · 7 votes
Hello everyone, I would like to put an offer for a 9,766 SqFt land lot in Ft Lauderdale. To build a new house
My guess is that I should call a contractor and get the price per square footage for new construction. Then somehow reverse engineer the numbers for my offer price. So price per SqFt of a new construction will be Repair costs then using properties ARV I would have to subtract so it makes sense the investment and the difference would be the offer for the land isn't it? This is just a guess... looking forward
Realtor · Fort Myers · Member since 2019 · 12 posts · 2 votes
7y
Eddie,
I would definitely get a contractor involved so that you know how much your looking at spending. Once you know how much you will spend in the construction phase you can begin to add up other potential expenses that you will incur waiting for the property to cash flow. What i would do is enter all potential costs into one of the bigger pockets deal calculators and see if it makes sense and then you could play with the price of the land and have somewhat of a better expectation of what you can offer on the land. In my experience the calculators work amazingly.