House Flipping - Preliminary Analysis - Rehab Cost
Hello BP!
I am new to real estate investing and working towards my first deal. I have a question about the preliminary analysis on house flipping. I am going through wholesale lists and reviewing comps for the properties in my price range. So I have the purchase price and the ARV. The wild card that I am missing is a preliminary cost for rehabbing the property to get to my ARV and seeing if the property is worth taking a look at to firm up the rehab numbers.
I am thinking of possibly adding a certain cost per square foot or even a certain percentage of the differential between the purchase price and the ARV but I don't have a clue where to start. Any suggestions are appreciated!
Most Popular Reply
Do you get photos of the houses, or no? If not, then there is zero way to get an idea. Pictures don't even give you a great representation, however it is how I base my initial review off. I do a baseline rehab cost on the photos alone. If it lands me ballpark into a deal, I schedule to see the place. Without photos, I wouldn't even know where to start to estimate a rehab cost.