Buying: at a very high level, you need to know construction costs, stabilized rents, expenses, reserve requirement and debt service, and your return threshold. You will need to know ARV, which will be driven by stabilized NOI and market cap rates.
All that will lead to an offer price. From there, submit offer, counter and negotiate, get awarded deal. Begin contract negotiations. Sign contract, submit deposit, complete Due diligence, secure equity and financing, close on deal.
Renovating: if you are down to studs, you are going to likely need full plans and permits. Before you get to finishes, you need to know if foundation, roof, plumbing tie ins, etc are going to need work.
Then you will have any new/changes to framing, plumbing and electric rough-ins, insulation, drywall, trim, doors, flooring, paint, finish plumbing, finish electrical, at a very high level. But flooring could be up to 3 different people, if you are doing a combination of carpet, tile and hardwoods.
At the end of the day, I would generally assume you are not ready for a project like this, if you are asking this question.
Buying: at a very high level, you need to know construction costs, stabilized rents, expenses, reserve requirement and debt service, and your return threshold. You will need to know ARV, which will be driven by stabilized NOI and market cap rates.
All that will lead to an offer price. From there, submit offer, counter and negotiate, get awarded deal. Begin contract negotiations. Sign contract, submit deposit, complete Due diligence, secure equity and financing, close on deal.
Renovating: if you are down to studs, you are going to likely need full plans and permits. Before you get to finishes, you need to know if foundation, roof, plumbing tie ins, etc are going to need work.
Then you will have any new/changes to framing, plumbing and electric rough-ins, insulation, drywall, trim, doors, flooring, paint, finish plumbing, finish electrical, at a very high level. But flooring could be up to 3 different people, if you are doing a combination of carpet, tile and hardwoods.
At the end of the day, I would generally assume you are not ready for a project like this, if you are asking this question.
Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
2y
Get yourself a good contractor first. This person can give you good advice on the costs. Make sure you get everything approved by the local municipality first. If this is your first time, you need a large contingency fund ready to go in case you run into problems. Sorry to be so brief, but please ask any specific follow up questions you have.