@Leigh Harris
Glad to hear you're getting into investing! I would not put marketing efforts on hold, as deals will continue to flow (and may actually improve in light of current circumstances). If you have a good deal come your way but are hesitant to pull the trigger, referring that lead to someone in your network/marketplace will go a long way in building your reputation in the marketplace.
Be sure you have solid reserves for the unknown. Cash will be necessary whether it's to float a long term rental experiencing abnormal vacancy, or to provide a contingency fund to cover cost overruns on a remodeling project.
It takes time, but knowing rehab costs is essential if value-add is your goal niche. I rehabbed houses full-time in the Minneapolis, Minnesota market (and surrounding suburbs) from 2011 until 2014, and now work full-time as a general contractor on (mainly) larger scale remodels. Although it's a great idea to get a few GCs out to verify costs, you also need to be wary of the type of contractor willing to schedule an appointment/provide a bid on a property that is not under contract. These are often contractors looking for work out of necessity (who tend to fail to deliver projects on time or on budget). Once you have an ongoing relationship with a few GCs, they'll be willing to do favors like this in the interest of the ongoing partnership.
I personally will not provide bids on properties that are not under contract. The Minnesota market is extremely competitive, and time is a finite resource. I know investors who have lost out on 5-6+ properties in multiple offers before they finally get a purchase agreement accepted. I have no problem giving time to bid a project I may be awarded (will only lose the project if my cost, working style, or availability are not in line with goals); however, I can't afford to give time bidding a project that a client may be unable to award, even if we’re the perfect fit (they don’t own or have the property under contract).
I know my construction numbers inside and out for my market (as I should after 10 years of full-time construction work). As such, I can bid a bathroom remodel for a client based on square footage, scope of work, and photos, and be within 5% of final cost (I'm typically within 5% even on jobs over $100,000 at this point). As such, if you're able to get that information (either from the MLS or seller), reputable companies should be able to easily give you a solid ballpark idea on renovation cost without visiting the property.
It is extremely important to verify the contractors you interview not only talk the talk, but walk the talk. Check references, ask to view job sites under construction and completed (cleanliness during the process, quality of end product), require proof of insurance and licensing, etc. Partner with the right contractor(s), and rehabbing is an awesome experience. Partner with the wrong contractor(s), and after one project you'll want to permanently close the door on RE investing.
Your first few projects will be the most difficult; however, "high-level" figures on cosmetics and standard replacements (furnace, A/C, water heater, etc) don't take long to master (at least within 10-15% variation). Call trade companies and obtain a general idea of cost for a furnace replacement, new roof (by square, 1 square = 100 sq ft), water heater replacement, cabinet costs (often by linear foot), flooring costs (by square foot), counter costs (by square foot), etc. Quality companies typically have no problem offering their. This will boost your preliminary knowledge base exponentially, and thereafter your confidence in offering on properties.
Once you have a bit more comfort with the straight forward items (or while you’re learning about them), get a property under contract with an inspection contingency of 14+ business days. At that point, a number of reputable companies should be willing to bid the project in person, and if your rough guess is way off, you can renegotiate with the seller, or back out of the deal.
Pursuing off-market property is definitely the best way to find deals right now, and I would argue those sellers may be even more motivated at this time (market uncertainty, reduction in showing traffic/potential health exposure, etc).
Finally, approach your investing similar to a "batting average". In the MLB, nobody has hit over .400 in a season since Ted Williams in 1941...which means he failed to hit 60% of the time he was at the plate, and everyone since then has failed at least as much! Don't be afraid to offer on properties and lose out on them, and after a few overly-cautious deals (since losses right out of the gate can be difficult to recover from), realize you'll always have some losers (I lost $30,000+ on one “flip”, but was able to off-set that loss by soldiering on and having a couple of winners immediately thereafter).
Hopefully you find this information helpful. If you ever have general construction questions, please feel free to reach out via message and I'd be happy to provide additional insight (may or may not be beneficial, since I'm in a different market).
Best of luck!
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