Estimating Rehab Costs

[Shawn Daniel]

Happy Friday Everyone!

I've recently noticed that, as I'm trying to get my REI business off the ground, I haven't had much experience in calculating rehab costs. This is a huge part of wholesaling (my starting point) and even more-so in fix and flips (where I would like to end up).

Would it be worth my while to find an investor/contractor who I could possibly shadow to help out with understanding the basics? Or is there a magical form that I can follow as a checklist?

Thanks for any insight!

[George Gray]

One of the best things I did when I started out was spending time in the home improvement stores wandering the aisles. You get to see what is available and how much it costs. There also are a ton of do it yourself pamphlets and taking time to read product labels and installation instructions is also helpful. Many also have do it yourself classes that are free. You may never do any of the work yourself, but being able to visualize a component and have a rough idea what it should cost and how it is installed can be invaluable. J. Scott has a book on rehab costs that is available through BP. I bought it, and even though I have years of experience estimating repair costs, I found it very informative and WELL worth the price. You might find a mentor or someone to shadow by joining your local REIA if you are not already a member. Good luck!!