can someone explain to me how they determine wether a site is a good development opportunity or a bargain. I see people talking about 'napkin numbers' and 'running the numbers' but what is it you have to take into account. Say you find an old 3x1 on an R40 block in craigie for mid 400k for example... Like this one 8 Barunga Way Craigie WA 6025 - House for Sale #123155354 - realestate.com.au So if I wanted to buy this and develop it what are the numbers I need to consider so I don't crash and burn. I am very interested in developing a block but am a little hesitant because I see all the things people talk about on this site and don't understand some of it. Any help would be great. Let's use the craigie site as a case study... What do you think??