Looking to buy an older home and tear it down.....

and build a brand new home in it's place. I am doing this in an area of town where this is very popular so my new house won't stand out or appear odd.

I would like to tear the old house down and build a brand new house in it's place. I am not a builder, however one of my very good friends is a builder and he told me that he would build me the new house at cost plus a 10% markup. He says that I can then sell the new house and still make money by marking it up higher than the 10%.

Does anyone have any opinions on this model? Can I really make money doing this?

Thank you! I am new to this board and I am excited to hear from you!