The first time you estimated costs..
Good morning everyone :)
We are evaluating our first buy and hold.. a little 700 sq ft 2/1 bungalow. It will need quite a bit in repairs, but we have zero experiencing in estimating costs of repairs.
When evaluating a property, how do you best ballpark the figures for rehab? Anyone have any lessons they've learned that we'd be smart to learn early? We just don't even know where to begin.. short of scouring the forums here for related posts :)
Thanks in advance!
Most Popular Reply
Scott's book is very helpful, if for no other reason than that it helps you put repairs into an organized progression. It also points out things you may have overlooked, which will have to be fixed & paid for.
My first advice would be to check out other properties in the area - don't put in a jetted soaker tub & tile surround when all the other places have acrylic tubs & glue-up surrounds. You just won't get your money out of it. It can still be nice-looking, but if the rent won't support it, you've wasted money on that improvement.
Whatever estimates you come up with, add 20% to it. Trust me. If you don't need it, bonus for you. But factor it in so you don't get caught with your (financial) pants down.