I'm setting up a strategy for investing (buy and hold) out of state, and the one area I'm not clear on, is estimating rehab costs from a distance.
I will be in my farm area to build a team, interview GCs, find trusted contacts and visit properties. However, I will mostly be out of state and I wanted to hear from investors here on how you get a good rehab estimate.
For example, once you find a property that requires your approximate desired amount of rehab, do you request your trusted GC (or two?) to go down there to give a better estimate before you put in an offer?
Originally posted by @Diana B. :
The rehab repair estimate is based on a specific list of items/issues in the specific building that does require repair. There usually isn't getting around an on site physical inspection of the property to get an exact and precise list of these items/issues to determine the exact rehab cost.
Many investors have bungled so many deals because they either relied on the seller or a realtor do get the repair estimate.
It is a very important number which you want to be as accurate as feasibly possible -- just as with the property's ARV.