Pittsburgh · Member since 2018 · 43 posts · 9 votes
Hello, as a beginner I am learning how to count all costs for repairs but I can’t find any good estimators or contractors who could help me to find out estimate to fix one big house. I am interesting to buy 5 bedroom house, but there is a lot of stuff that needs to be done. I have a hundred pictures that I could send and explain what we would like to do, thank you!
Investor · South Florida · Member since 2016 · 9 posts · 4 votes
8y
I have two suggestions. (1) Find an experienced investor and cut her in on the deal. Just make sure they have real experience in YOUR local area and with the property type. Reach out to them and ask for a 10-15 minute conversation and see if they will partner with you for a small slice of the deal. A lot of investors may do this as a part of "good will." (2) Find a certified 203K consultant-flat fee (I think HUD.GOV maintains a list). For big job (repairs in the amount of 100K or more) the fee is going to be (last time I knew) $1,000. This number should at least give you a minimum baseline. In my experience these guys have extreme knowledge and once you are talking to them you will learn a lot and the report they provide will give you a good jump point.
As an aside- I do not understand why people are so rude when answering the questions. This is supposed to be a forum for leaning and growth. Anyway, I hope my ideas help.
I have two suggestions. (1) Find an experienced investor and cut her in on the deal. Just make sure they have real experience in YOUR local area and with the property type. Reach out to them and ask for a 10-15 minute conversation and see if they will partner with you for a small slice of the deal. A lot of investors may do this as a part of "good will." (2) Find a certified 203K consultant-flat fee (I think HUD.GOV maintains a list). For big job (repairs in the amount of 100K or more) the fee is going to be (last time I knew) $1,000. This number should at least give you a minimum baseline. In my experience these guys have extreme knowledge and once you are talking to them you will learn a lot and the report they provide will give you a good jump point.
As an aside- I do not understand why people are so rude when answering the questions. This is supposed to be a forum for leaning and growth. Anyway, I hope my ideas help.
Just checked HUD.GOV it has all forms documents, declarations, assessments . Damn that's great. Thank you a lot!
@Alina Beryh another technique is to try different contractors for different parts of the renovation rather than letting one company do the entire job. One guy does the outside repairs/paint. If you don't like them, find another guy to do the interior paint. Another to do the floors, etc. Once you find a good company that you like, give them the entire job next time. As a flipper, it's all about the ARV minus repair and holding costs. As a buy and hold investor, you don't need to be that close on the numbers because the longer you hold it, the more you make.
Rental Property Investor · NY · Member since 2018 · 571 posts · 332 votes
8y
great thread. i got lucky as realtor i'm working with currently has a husband and son that works as contractor so she can give me a pretty good estimate on repairs, but once i decide to move onto a different area i'll need to be able to figure it out on my own. Thanks for a good thread @Alina Beryh
Morton, IL · Member since 2018 · 25 posts · 13 votes
8y
Based on information I received at a REI conference, I will be building My Team, which will include several Contractors. I will grade them since some may be more detailed in their work and would be suited for a high end home, while others will do fine for a standard end home. You, and I, will have to build a relationship with them. The longer that goes on, the better the relationship and the better the cost estimates and the work that is done. Like @Michael Hollander said, you will have to use these Contractors. And as you get better, you will know which one to call. Since the ones who don't get it will become offended and you will lose that relationship.
Contractor · Canton, GA · Member since 2015 · 111 posts · 81 votes
8y
On the subject of windows, As a remodeler and renovator,I 'd get the measurements, see what type of windows are next door (approxiamate vinyl or wood type) and call a window supply company for material and turnkey price, if they do such. The Labor is tough because time is money, also if the windows are rotten thru, the structure is probably compromised underneath as well. If the Sashes are bad and the sills are good, i'd get inserts or sash packs if you are tight on cash. Lastly, double pane windows are usually overrated in renovation because the payback is usually 10-15 years as flashy as they appear. Single pane windows are fine provided they don't leak air (check to see if they rattle).
Aesthetics help to sell ,but you can shop this cheaply by the square foot. If I'm buying, I will check the roof and foundation first. Look at the mechanical systems. Damage in these areas will start a talk or a walk.
Investor · Costa Mesa, CA · Member since 2017 · 18 posts · 9 votes
8y
@Alina Beryh - try partnering with a handyman/general contractor. I am sure that will be entice them to come out to the property. Once you have done a few projects with the same crew, they will see you as an important part of their pipeline. My handyman will often go see a home before I do, to let me know the costs. Take care of your people and they will take care of you.
On the subject of windows, As a remodeler and renovator,I 'd get the measurements, see what type of windows are next door (approxiamate vinyl or wood type) and call a window supply company for material and turnkey price, if they do such. The Labor is tough because time is money, also if the windows are rotten thru, the structure is probably compromised underneath as well. If the Sashes are bad and the sills are good, i'd get inserts or sash packs if you are tight on cash. Lastly, double pane windows are usually overrated in renovation because the payback is usually 10-15 years as flashy as they appear. Single pane windows are fine provided they don't leak air (check to see if they rattle).
Aesthetics help to sell ,but you can shop this cheaply by the square foot. If I'm buying, I will check the roof and foundation first. Look at the mechanical systems. Damage in these areas will start a talk or a walk.
Thank you so much, now I know how to price windows and what I have to look at if I will need windows
Real Estate Agent · South Jersey · Member since 2018 · 40 posts · 8 votes
7y
@Alina Beryh
Hello Alina, my company offers a “virtual repair estimator,” which can evaluate prices to repair specific area in a home and also calculates ARV. Contact me if you are interested.
My two cents as an investor and someone who runs a construction company:
A lot of smaller contractors are skilled but terrible estimators. Their estimates are sometimes off by a large amount. This is one reason why its important to compare the bids and make sure they are accounting for everything. If you ever see bigger construction projects, this process can take months due to the complexity.
Working with an experienced investor is a good idea. Sometimes newer investors make rehab decisions that do not justify the money or pose a great risk. For your first rehab, I would say you want to focus on sticking with cosmetic rehabs first.
If you have the patience, you can create a schedule of value for the entire project and ask the contractor to bill against it every month (or whatever time period). Some contractors will have no idea what you are talking about or just don't want to do it. Others are more flexible.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Flipper/Rehabber · Huntington Beach, CA · Member since 2017 · 42 posts · 13 votes
7y
Homeadvisor.com has an "average" price estimator system online for almost every job you need done. they tell you the Low end, med range and high end "typical" price. You might be able to use this tool to get a ball park.