Tommy Dobczyk analyzes a real estate deal where doubling square footage could unlock profit. Comparable sales range from $400 to $900 per square foot. He compares ROI across strategies: scrape and rebuild, buy and rent, or rehab and rent.
Chapters
Are you in the deal room? Our square footage, then that might work. We're in this deal analysis right here where these comps show that the square footage price goes from anywhere between $600,000 and $900,000. So, and with this square footage price up here being at $500,000-something, I think it said the, yeah, $542,000 was the comp here at 1.6. This comp up here, this square footage price is based on the 3,000 square foot. So it's, it's around $500 a square foot at the 1.34. Yeah, it's just over $400 a square foot. So if we're able to double our square footage, then that might work. So quick scrape, build, rebuy, land, uh, build back ROI lands is our break even would be, uh, So it says here the base, the base case shows that at a $6,000, we'd be at 3.1 to 4.2. So let's do this. Run a side-by-side comparison to the, and, and show me the ROIs on, on buy and rent, rehab and rent versus the scrape pro forma. And I want to do an upside case where it's like a magazine-style house. And let's use the $900 a square foot model and then just show me what the ROI is compared Perdable.