Flipping cost per sqf in Maryland
Hi group,
I've been looking for flipping opportunities in Batimore county and certain areas in Baltimore city. Basically each time when I run my numbers in order to make an offer, it turns out the offer is way below the asking price. The quick math I do is ARV*65%-rehab cost. I'm usually confident about the ARV, however, I have been told that in Baltimore, I should use at least $60 per sqf. One of an experienced flippers from REI club says that nowadays it's easy to go above 70k on rehab. I was looking at a off-market deal, it is 1100 sqf, I brought my partener who is s flipper and builder with me to see the property, it is in a bad shape, because trash is everywhere, bugs cover the all floor. He is looking at 100k rehab and he is not sure once clean up everything and go to the surface there may be other hidden issues. Then after making an offer and negotiating , we decided to walk away.
The frustration is that it is really that expensive in Batimore for the rehab cost, I know it really depends on each property.My question is if you are not able to see the proper or couldn't have a contractor come out each time when you go to a property, what is the cost per sqf you may use to estimate the rehab cost. Otherwise I may always make a ballpark offer and most likely I won't get any deal. Please help and Amy suggestions are sincerely appreciated.