Estimating rehab costs before or after inspections?

[Patrick Zepeda]

Hi all! I am having a hard time understanding the timing of the estimation of rehab costs. I thought you first estimated on a PSF basis how much the rehab would cost to come to a purchase price (PP+Rehab=70% of ARV), but does it not make more sense to do the inspections first and then have contractors bid on the total project cost with more accuracy? Can this be done within a 7-15 day period to close quickly? Assuming you renegotiate the price if the inspections show more than what's superficial.

Thank you in advance!