Need help on my first deal,please

Real Estate Investing Single-Family Homes
1

single family house,1552 sqft,bed/bath 2/1.5
12200 sqft lot, huge front yard.
built in 1949.
land value $9000. very bad condition,needs tear down,rebuild.
ask for $40,000. eppraisal/zillow:$66,000/$62,000
county tax appraisal:$44,000.

asked contractor to estimate,he said he can rebuild 4 bedrooms house with swim pool for me cost $60/sqft,around $100,000. I can sell at most $120,000.

my plan is to negotiate to $25,000 then flip to other guys.make about $5000 or $10,000 profit. Is this plan practical?

Appreciate for any response.

2

Hmmm…

So you want to buy it as land for 25k and sell at least for 30k while land value is 9k. Not saying who is going to pay for demolition, etc.

3

ready to give up this,

it’s not a good deal.

4

couple of things

1: zillow appraised value is worth nothing… You have to look at the comparable sales.

  1. land value (assessed value) is worth nothing.

  2. even if you get it for $25k…
    -100k to rebuild

    • 25k purchase price
      = $125
    • And at the most you can sell for $120k?

Get some real numbers on the table, first.

5

Definitely not a deal.