FSBO Tear-Down - Worth while investment?

[Eric Miller]

Me and my partner found a FSBO property in a pretty desirable area of Southern California and after contacting the seller in regards to it, he said the home is a complete tear-down and isn't in any condition to do a quick rehab/fix and flip. Is there still any good value here for a wholesale deal?

It looks like he's selling the property at market price, but the price can't be justifiable if it's a tear down. How should we go about analyzing a fair price to pay for something like this if we were to consider it?

Here are some details:

Asking Price: $680k

Specs: 2 bed, 1 bath, 1,000 sqft.

Comps around the area are around $650k and $690k but fully renovated and 3/2 mix.

What are your thoughts?

Thanks!

[Andrew Syrios]

If it's a tear down, the value of the property is the value of the lot minus the cost to scrape the house. Given it appears to be listed for what renovated comps are, I wouldn't bother working on this one and move on to greener pastures.