Updated over 7 years ago on . Most recent reply

When do you bring in contractor?
Hi guys im looking to BRRR in near future as a first investment purchase, most likely 3-4 plex. When im looking at properties on zillow, etc (not yet using a local realtor but i will be for MLS) sometimes all you can see are pictures of the outside. I know Brandon on the podcast mentions he usually wont visit a property until after in contract. As my first purchase i will see it myself. But Since i wont be a good judge at estimating rehab costs, how can I come up with a good offer based on rehab needs? Does anyone in here go see the properties with a contractor prior to making an offer? I feel like that is a waste of time for contractor and he probably wont do it more than once. Or do you give it a wild guess and hope to not be too far off, renegotiate during inspection after an accepted offer? What if the number is far off and u need a major renegotiation? How does the conversation with a contractor go, do you always have them use their guys for the work? I feel like i have a good grasp on a lot of the process except the dealing with contractors part...
Thanks appreciate any info.
Erik
Most Popular Reply

@Erik Pfundstein you might want to get a copy of J. Scott's book "The book on Estimating Rehab Costs"
https://www.biggerpockets.com/store/flipping-estimating-physical.
if you really have know idea about estimating costs you could always pay a contract a consultation fee to walk the property with you and give you an estimate. They would probably be willing to do it for $50-100 for 30 minutes of their time and a possible job. After you give them a few jobs they would probably start doing walk-throughs for free because they will have confidence that it will turn into a job for them.