Executing Repairs, and Working with Contractors...

[Leslie Zhang]

Hello,

I've been analyzing many repair estimates, and contractor bids. It seems repairs can be estimated on the age of the home, and the square footage.

However my question is - How do I decide which materials (based on price, aesthetics) to buy when stores like Home Depot, Lowes have a lot to choose from.

Does the contractor pick out a good deal of it, or is it all the investors discretion?

Thank you,
Leslie

[Randy F.]

That will depend on the contractor. In a large percentage of the projects I have done, ive been heavily involved in the design side. When working with investors, its less about getting an understanding of their individual tastes, rather looking at the properties needs and then choosing materials and finishes that lend themselves to the style and character of the home. Some contractors have designers they work with and still others want nothing to do with that side of it and just want to be told what is wanted and do the work.

Its a good question. Ideally, one would look at the estimated cost for essential repairs such as demo, drywall, paint, floor prep, electrical and plumbing, etc., and then choose cabinets, countertops, and flooring based on what remains in the budget. This is why the pre-purchase estimate is so important, especially when working under tight margins. There are aspects of the rehab that must be done so cutting costs can only be done on the most important features of the rehab. The more you understand comps and what buyers in your market are looking for, the better your decisions will be.