When collecting as much info on a RE prospect to send to an investor, how is the best way to estimate total rehab costs within a 20% radius if I have no prior rehabbing experience? Is there a formula to go by as I am sure I am not the first to have this dilemma? Thank you very much for your feedback in advance..... :D
The short answer is NO.
The main reason is contractors. Just get 5 bids for any job and your spread will be larger than 20% between the bids. The reason? One of the 5 might complete the job as asked within the timeline. 1 might do a beautiful job in his own sweet time. One might require money up front, then might show up once a week to work on it if you are lucky, another might never show up. And lastly, you may have an overeager contractor that tears everything up, but isn't so good at the detail work and it looks like crap when it is done, on tiem and within budget. How do you deal with that?
Experiance. Go in with an idea of what you plan to do and hope for the best. Don't do anything that will put yours or your families finances at a catastrophic risk.
First,you need to be good at identifying what needs to be fixed first, then identify what the costs should be for good work done timely. Then you should be ready to give it the ole college try.
If you were bird dogging though, you are trying to collect as much info as possible without having to pay for such expenses as contractors and in my case I wouldnt be able to afford it...Unfortunately I do not have the knowledge or skill of assessing a value for rehab work to include with the info to the investor.....What would be my best option in this situation?