I'm looking at my first new construction project, and I am curious what people think a total demolition of a typical mid-block row house costs in center city Philadelphia. The access is relatively easy. It's a three-story house, around 1450sqft. My gut renovations have been 6-12k for demo, so my guess is around 25k to knock the structure down and dig up the foundation. Does anyone have experience with this? Thanks!
@Alex T. I’ve spoken with a few big developers. Though I have no experience myself. I’ve gotten ranges of 25-50k for complete demolition. Hopefully someone with more expertise can chime in.
@Bill Plymouth Thanks. I think that sounds like a reasonable range. This house is pretty small, although it's 3 stories.
@Alex T. can you provide some more info on the deal? Curious to see what types of deals people are getting. What did you purchase the house for? What are you planning on building? Estimated rehab costs? What do you expect the ARV to be once it's all said and done?
@Justin McElroy Sure...500k purchase price, projecting 450k demo/build, ARV of 1.2M-1.3M. Approximately 3% fees on the buy side, 20k carrying costs, and 6% fees on the sell side (I am a REA, so this is reflected in the 6%). It's certainly a lot of money to tie up, but it'll be new construction in a great area, with parking, so I feel decent about it even if the market slows down before next summer.
Appreciate the insight @Alex T.
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