Estimating repair cost for long term rental

1 Reply

This may seem like a very basis question but I just wanted to make sure it got this idea correct.

So I’m currently living outside the US and want to start long distance investing. I will be purchasing sight unseen so I ideally looking for turnkey but it’s hard to get a good deal on turn key for obvious reasons.

When it comes to purchasing non turnkey homes let’s say I find one I like but may require a small amount of modernization, paint, etc to become rent ready. How do you estimate the cost on this so you can know the right amount of offer on the house? Since these aren’t really deficiencies but more cosmetic this I assume wouldn’t normally covered in any inspection contingency so i don’t believe I will be able to back out if I make an offer and a contractor says it’s going to require more than I expected.

I apologize is this is a really silly question as I’m not really familiar with the process. If someone can send me resources detailing offer through closing that would be great. Should I find a contractor to walk he property and put a quote together even before I make an offer?

Originally posted by @Jason Lam :

This may seem like a very basis question but I just wanted to make sure it got this idea correct.

So I’m currently living outside the US and want to start long distance investing. I will be purchasing sight unseen so I ideally looking for turnkey but it’s hard to get a good deal on turn key for obvious reasons.

When it comes to purchasing non turnkey homes let’s say I find one I like but may require a small amount of modernization, paint, etc to become rent ready. How do you estimate the cost on this so you can know the right amount of offer on the house? Since these aren’t really deficiencies but more cosmetic this I assume wouldn’t normally covered in any inspection contingency so i don’t believe I will be able to back out if I make an offer and a contractor says it’s going to require more than I expected.

I apologize is this is a really silly question as I’m not really familiar with the process. If someone can send me resources detailing offer through closing that would be great. Should I find a contractor to walk he property and put a quote together even before I make an offer?

 3 very common biggies that is pretty standard on most common Midwestern turnkey inventory are 

  1. Roof - Typically last 30 years & cost between $4,000-$8,000 to replace depending on size of home.
  2. H20 tank - Typically last 15 years & cost around $1,000 to replace.
  3. Furnace - Typically last 30+ years & cost around $3,000 to replace.