I was wondering if anyone had a rule of thumb or way of quickly determining a rehab cost range to decide if something is a good deal or not? I bought and am currently reading J Scott’s book on estimating rehab costs, and I am sure most of this comes with experience, but for instance, If a wholesaler sends me a property and says something like “quick in and out opportunity. Property has good bones, just needs cosmetic upgrades, paint, flooring, appliances etc...” obviously I am to be very cautious and do my own research but assuming all of this were true and the house is 1800 sqft 3br/2ba....is there a max number that pops into your head when you see that something of this size just needs cosmetic repairs? Is there another max number that pops into your head when you see that a house this size needs basically everything? I have no experience, but for some reason when I hear just cosmetic upgrades the number $30,000 comes to mind. Like how could basic upgrades go over that budget? But I don’t know. And then when I think of an entire renovation top to bottom the number $200,000 pops into my head, but I know these numbers are just made up and not based on anything i have experience with. Does anyone have any recommendations for getting more experience with estimating rehab costs? I know the simple answer is just to buy my first deal and experience it first hand. I promise I will do that. I’m trying lol! In the mean time any advice is incredibly appreciated! :)
@Kyleigh Morgan Im a property adjuster so I have estimating programs that I can literally just write our own estimates/rehab cost in and get a very close cost on what the renovation would actually be. Bc of my work history I was already comfortable with estimating the cost.
You could find individuals like me near you, that you trust completely, who write property/home estimates (independent adjusters & contractors), and will help you out if you pay them. Either as a trainer or business partner.
If you do not know how to estimate the rebuild then partner with someone who does on the first deal or two until you get a better grasp on it.
@John Mader thank you so much! That is very good advice! Someone else mentioned that too and I think that would be very helpful for my first deal :)