First Time Investors: a QUICK rehab-cost gut check, open conversation

[Steven Wesolowski]

Rehab numbers kill deals faster than comps. Investing is speculative and risky.

You will never know until you take the plunge into your first project, whether you are doing it on the side yourself, or leveraging with the help of a trusted general contractor. 

Here’s my QUICK rehab-cost gut check before you ever swing a hammer in San Antonio:

- Separate MUST-FIX vs NICE-TO-HAVE (keep the scope tight).
- Cost per sqft is just a STARTING POINT, not a bid.
- Walk the 'big-ticket' systems: ROOF / FOUNDATION / HVAC.
- Never skip PLUMBING + ELECTRICAL (panel, lines, fixtures, outlets).
- Count KITCHENS + BATHS and use unit costs to sanity-check totals.
- Check CITY PERMITS + CODE items early (they’re budget busters).
- Get 2–3 CONTRACTOR BIDS on the same scope-of-work.
- Add a 10–20% CONTINGENCY (older homes deserve it)
- Include HOLDING COSTS: financing, utilities, trash, insurance, lawn
- Match FINISH LEVEL to the neighborhood + your ARV (don't over-improve)
- Hunt HIDDEN ISSUES: water intrusion, termites, mold
- Take measurements + photos, then build a repeatable 'Statement of Work' template

Thoughts?

[Bruce Woodruff]

Good list! I would only add that a prospective buyer should call the City (first thing) and ask for Permit Status.....are there any Open Permits? Is there obviously new work (like a remodeled kitchen or room addition) for which there is no Permit?