Get material and labor costs for your rehab estimates instantly

[Kuba F.]

Hey Everyone,

This is Kuba Fietkiewicz of REIkit.com house flipping software, headquartered in Los Angeles. Today I wanted to talk about property flipping rehab costs.

If you're just starting out in the house flipping business, you may have found out how hard it is to estimate house construction costs. There are really only two options in solving that problem:

1. You can bring a general contractor with you to every property you think is a potential deal, or 2. You can get hands-on experience in identifying what is wrong with a house and do your own estimates.

The first choice is going to become expensive, fast. Unless you are in a position where you can offer work to the GC on a property you acquire, you're not going to get anyone to work for you for free.

The second option is the way to go. Yes, it requires more time and effort, but the education you acquire and eventual savings will more than make up for that. So, what's the best way to get this experience?

In my own fix and flips, I evaluate as many properties as I can find, and when I go to visit a potential flip, I take along my camera and film a walk through of each room and the exterior, carefully narrating what needs repairing.

Then comes the difficult part: identifying all the items involved with a repair, itemizing all of these costs into one tidy list, and calculating the final cost. For example, a window repair not only includes the cost of the actual window but also the labor that it costs to install it.

I created the Rehab Estimate tool to help take the unknown out of getting an accurate estimate. Not only does the tool have thousands of items to choose from, but each item has a material cost and labor cost associated to it, with all costs based on your zip code, so you get the most accurate estimate. From there it creates an itemized list for you to share with contractors for project bids.

If you'd like to see how the Rehab Estimate tool can help you with your estimations, try it out here: https://www.reikit.com

Any questions or suggestions, I'd love to hear it; comment below or chat at the site.

Cheers!

Kuba