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Updated over 7 years ago on . Most recent reply

User Stats

59
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23
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Erik Pfundstein
  • Rental Property Investor
  • Manchester, NH
23
Votes |
59
Posts

When do you bring in contractor?

Erik Pfundstein
  • Rental Property Investor
  • Manchester, NH
Posted
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

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204
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174
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Josh Dillingham
  • Rental Property Investor
  • Brattleboro, VT
174
Votes |
204
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Josh Dillingham
  • Rental Property Investor
  • Brattleboro, VT
Replied

@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.

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