Rehab Cost's on the Fly
So, I keep reading how it is such a great strategy to come to a showing with a contract in hand and I agree it probably is. My question though is how do you come up with an offer price right there on the spot? Obviously you have ARV ahead of time and you know the max you can pay based on the 70% rule but how do you figure repair costs on the fly? I have read J Scott book and have created a great spreadsheet based on the categories he uses. The spreadsheet works great, but it's a bit impractical to set up on the kitchen table (if there is one) with my laptop and spend 20 minutes punching in every little thing. I know some of you guys have streamlined this process a bit to get a good preliminary number so you can make an offer on site, I just am not sure how? Do you just give everything a flat number per square foot? Do you just figure a flat figure that covers a traditional renovation (i.e. new floors, paint, appliances, cabinets, counters, baths etc.)? Perhaps a cost per type of room (i.e. $15k for a kitchen or $8k per bathroom, etc.)?
The ultimate goal is to come up with a spreadsheet that I can load on an ipad and edit as I go but for now I am sticking with a pad and paper. Any advice is greatly appreciated.
Tom