I’m going to admit my fear to hopefully find wisdom and maybe help others who feel the same!
I have read/studied more on this website and books than I can actually remember. I found a house that was very run down (needed roof, some slab work, dry wall and paint) but, have no clue how to estimate costs.
I listen to Brandon on how he walks through the house and records notes per room. I love that but, I have no clue what value to estimate on fixes. I get scared thinking I will way under value fixes and get totally hosed on a deal.
I’m studying, putting in effort, have a real estate guy. But this hurdle is killing me!!!
What do I do? I’m just trying to start so the 2 good contractors I know are kinda wait and see if I’m worth their effort and time (I totally understand that).
OK, go ahead and light me up but please at least be informative and thank you in advance.
Hey Hey ,
I think that you should look for local contractors in your area that do free estimates and see if they will come out and give you a free estimate. After they do that ask them for a break down of each cost so you get an idea of how much everything is costing.
After that contact another contractor to have him do the same and compare the estimates to see if they are consistent.(or get a free verbal quote)
If that is too much for you , theres a book called estimating rehab costs I think that is helpful..
@Michael Winders the book by Jscott on estimating rehab is good. I would call a couple contractors and have them give you a detailed estimate for repairs. Even if you have to give them $100.00 for the estimate it’s money well spent for piece of mind.
Drywall, paint, flooring, cabinets, and so forth are pretty straight forward and common repairs on a fixer property. A roof is getting pretty expensive, especially if it has leaked. You'll want to get into the attic and see how the sheathing looks on the bottom. If you have to tear off shingles, repair sheathing and perhaps rotted trusses/rafters, a simple re-shingle job could be thousands more.
You mentioned slab work. Is that for the house or a driveway? Concrete work is expensive. Especially if existing concrete needs to be removed first.
Unless this house has a high ARV vs the purchase price it's probably not a good idea.