Rehab estimator help
I'm trying to use the rehab estimating tool for the first time. It makes no sense to me. I'm getting negative numbers for builders labor and some numbers wouldn't purchase the item. Is there a video? I'm feeling stupid. I'm NOT new to this. I've been a builder for 3 decades. BP / Kukun has me stumped.
Yes I find that calculator very user unfriendly and it doesn't seem to work. I have a simple rehab analysis worksheet that I created but you have to know what things costs (labor and material) since it does not estimate costs.
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
Stop using online tools, get contractors to walk your properties and bid the job.
Use a basic spreadsheet with numbers you can update easily and you will find that they get you in the ballpark quickly. We put it on a tablet that we take with us as we walk through properties and get an idea as to if the property is worth pursuing.
Getting a contractor to walk the property and give you an estimate (quote) is the best option but if you are just fishing to see if you can get a property, that welcome mat will be put away quickly - they need to make money and doing free walkthroughs will not fly for long. We use a select group on properties we know we will buy (unless they find a surprise) and then they know they will get the work if we get the property. But expecting to get contractors to walk every property you come across is not going to fly especially starting out.
Thanks, For clarity I do actually know how to walk the property as I am a contractor and have owned and operated for over 30 years. I was using it for a comparison to see what other BP folks were comparing to. (obviously not this) When I got into it I simply couldn't believe that the numbers could be that far off and thought possibly i was using it incorrectly. Th others such as rent can be customized with % and be highly accurate. I guess I was expecting something like Xactimate. If this is what investors are using its no wonder they have bad experiences with contractors!
#3 General Landlording & Rental Properties Contributor
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#3 General Landlording & Rental Properties Contributor
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Quote from @Aaron Maggard:
I'm trying to use the rehab estimating tool for the first time. It makes no sense to me. I'm getting negative numbers for builders labor and some numbers wouldn't purchase the item. Is there a video? I'm feeling stupid. I'm NOT new to this. I've been a builder for 3 decades. BP / Kukun has me stumped.
Why so many make things more complicated, All these tools. I have done 1ks and 1ks of reno/ repairs, never once using a tool, simply walk the property with someone doing deals, It will take you a day, to understand, its not rocket Science... I can walk any property in 10 min and tell you what it will cost. You will too, get hands on experience and throw away all these " tools "