Tucson, AZ · Member since 2018 · 3 posts · 0 votes
Hello everyone I need some help. I found a property that is vacant and sits on almost 5 acres in Catalina Foothills in Tucson AZ. The location is prime and has beautiful Mountain Views. The house is a total gut job. The seller wants 800k for the land and property. I need help with estimating the rehab cost and figuring out what my offer should be. Any help would be greatly appreciated. I am new to wholesaling and if everything works out this may be my first deal!!
Unfortunately, estimating rehab costs is extremely difficult and requires a lot of experience. I would try to hire a contractor and walkthrough with them to get an estimate or get a more experienced house flipper to help you. I actually think estimating rehab costs accurately is the most difficult skill to especially if you don't have construction experience.
The other issue is that cost is very different depending on the region of the country you are in. In the Boston market new construction can range from $100-300/sq. ft. depending on where you are.
If worse comes to worse, you could just throw a large number out there and make your offer contingent on verification of rehab costs or something like that.