- Real Estate Agent
- New York, NY
- Votes |
I'm still in the research phase of my BRRR strategy and just getting estimates to see if I understand the numbers. My main issue that I come across a lot is that I never know how to estimate rehab cost, whether it's a gut renovation or just cosmetics. Can someone assist me with that or provide insight?
I am using "657 N 41st St Philadelphia, PA, 19104" as a first model. I am gauging that the ARV is $250k and I keep with the purchase price at $120k. If I incorporate a hard money lender, I am estimating they will loan me 65% of purchase price and and 95% of rehab costs, with 2 points on the loan for 12 month period (I got these numbers off a hard money lender at a presentation). Based off rentometer, I will also say rent is $1500 to 1700/mo.
This is as far as I got building the model so still need to incorporate the refinancing portion, taxes, vacancy, repairs, property management... so please let me know if there is anything I should also taken into account or if any assumption is already wrong. Greatful for any help necessary.