Investor · Philadelphia, PA · Member since 2015 · 172 posts · 58 votes
How do you know what to do, for example, for converting something into a master bedroom, or remove walls in a certain area, or any other type of restructuring or remodeling project where real estate is altered to fit a new purpose or design? Do you need real estate design expertise or lots of hands-on experience to know how to proceed? Also how do you estimate properly what the costs for rehabbing will cost in advance before actually hiring contractors?
Investor · Princeton, IN · Member since 2017 · 109 posts · 54 votes
6y
Having a good relationship with a realtor in the area in which you're wanting to invest is key for this reason. They can tell you (without you having to waste a lot of hours going to look at multiple houses in the neighborhood) what the comps look like, which upgrades will give you more bang for your buck, if they are worth doing, etc.
To answer your rehabbing cost question, I strongly recommend J Scott's book, The Book on Estimating Rehab Costs. I read the original version, and in the back, there are spreadsheets made up to give you a good idea of what costs to expect. Most contractors will give you free estimates for projects too, and you can (subtly) ask them what they charge for certain items. If you let them know you are an investor and will potentially use them for multiple projects, they might be more apt to give you this amount of time and information.
Investor · Princeton, IN · Member since 2017 · 109 posts · 54 votes
6y
Having a good relationship with a realtor in the area in which you're wanting to invest is key for this reason. They can tell you (without you having to waste a lot of hours going to look at multiple houses in the neighborhood) what the comps look like, which upgrades will give you more bang for your buck, if they are worth doing, etc.
To answer your rehabbing cost question, I strongly recommend J Scott's book, The Book on Estimating Rehab Costs. I read the original version, and in the back, there are spreadsheets made up to give you a good idea of what costs to expect. Most contractors will give you free estimates for projects too, and you can (subtly) ask them what they charge for certain items. If you let them know you are an investor and will potentially use them for multiple projects, they might be more apt to give you this amount of time and information.
Investor · Philadelphia, PA · Member since 2015 · 172 posts · 58 votes
6y
Thanks Dalton! I guess the next question would be how do you find a good agent that knows the market and knows how to give such advice? I think you would contact several agents and interview them to see who will ultimately be the guy or girl you go with.
Investor · Princeton, IN · Member since 2017 · 109 posts · 54 votes
6y
Look for agents that are investor friendly. Some only work with home owners. It's not always a requirement but a good characteristic of a good agent for an investor is if the agent invests themselves, whether it be rentals or flips.
Investor · Philadelphia, PA · Member since 2015 · 172 posts · 58 votes
6y
Thanks so much for the input! As you can probably tell, I'm new to the investment scene but have been reading things on real estate for years. I live in the Philadelphia area so if I can invest in a nearby sub-market that would be great to start off with. Any advice on investing near home vs. distance investing? I feel there should be a deal somewhere near me but if investing away from me is the only option I'd consider it... it would just be harder to rehab it, manage it, etc.
Investor · Princeton, IN · Member since 2017 · 109 posts · 54 votes
6y
David Greene has a good book called Long-Distance Real Estate Investing. I read it and gleaned some good information even for investing in my own backyard. Finding great contractors, real estate agents, lenders, and property managers is vital to your long-term success. I have started using electronic deadbolts so that I can just give someone the code when they need to get in. I have also started using services like Venmo, the Cash app, and Paypal to pay my workers remotely. With picture and video messaging and even apps like google duo and google keep, it is very easy to get projects completed and minimize or eliminate the requirement for your presence.