How do I calculate rehab costs?

Question

Hey,

I’m looking to buy my first duplex and I’m trying to figure the costs for rehabbing in my area. I don’t have a specific property as I’m browsing and trying to see what’s a good deal/ bad deal. But I’m having a hard time when calculating the rehab costs. Are the websites where I can get this information?

Dalton Dellinger · Answer

Check out J Scott's books, The Book on Flipping Houses and The Book on Estimating Rehab Costs. Chances are, the costs associated with the book aren't 100% accurate for your area, but they are a good guideline to make offers from. As you get more experience, start studying material costs at your local home improvement stores (whether mom-and pop or "big box"  stores),and work with more contractors, you can change out J's numbers with your own. In the back of the Estimating Rehab Costs book is a spreadsheet. I typed it out word for word and refer back to it when wondering how much something costs. Hope this helps!

Ree Rolle · Answer

@Dalton Dellinger wow I didn’t realize to study the materials. Good info I will start doing that!

Robert Heydenreich · Answer

Hey,awesome question, the best rule of thumb is 70% of after repair value (150,000 approx 110,000 purchase) that`s if you can get it done cheap. Perhaps you have good carpenter skills so and know the ins n outs say 10,000 out of pocket. The second approach is the same as the first except you buy at 50% and remaining 20% go`s towards rehabbing. to answer your question  isn't so easy there are unforeseen problems in every home, pluming ,structural integrity, etc... have the home inspected by the pros if in doubt. Good luck