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Updated over 6 years ago on . Most recent reply

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Nickolas St germain
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Rehab, need help estimating costs

Posted

I bought my first income property. Using the BRRRR method. Now I'm going through the rehab costs and the numbers are fair (learning curve forsure) I was wondering if there was any way or means to find out how much percentage of return based on rehabbing certain things such as (paint, flooring, bathroom etc.)

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Jack Inman
  • Attorney
  • Memphis, Tn
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Jack Inman
  • Attorney
  • Memphis, Tn
Replied

@Nickolas St germain I'd recommend looking for half a dozen comps in the area that support a satisfactory appraisal, and then rehab your property to be on par with those properties. I could be wrong, but I don't think there's a way to accurately judge the value increase per item. 

In my market, appraisers will assign the property a score which represents their opinion of the quality of the property. Things like paint and flooring will factor into that score, but it'd be difficult to estimate the ROI of painting. Instead, I'd recommend just trying to match the quality of the good comps in the area.

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