I caught myself doing bad math on a rehab deal

[Ali Kalaei]

I caught myself doing something dumb while looking at a rehab deal.

There were two versions of the property in my head.

One version was the deal I wanted it to be: light repairs, clean scope, easy contractor walk, decent margin.

The other version was what the inspection notes were quietly saying: old systems, moisture questions, a few things behind the walls, and enough unknowns that the “repair estimate” was really just me picking the number that kept the deal alive.

That’s the part I’m trying to get better at. Not estimating repairs perfectly. I know that takes reps. I mean catching the moment where I stop underwriting the house and start underwriting my hope for the house.

For people who have done enough rehabs, what’s the first sign that you’re lying to yourself about the scope?