Coming up with rehab numbers off the cuff....
Background: I have been in the real estate industry for around 10 years as a mortgage originator but only as an investor wholesaling since February of this year. I really want to get into flipping but I just can't seem to get on the same cost page as the contractors I talk to. lol
In my research I keep coming across this "$20 per sqft" rule that is suppose to give you a mid range kitchen with hard surface countertops, tiled up bathrooms, and a fresh coat of paint on everything else. Add $10 per sqft if you go with high end materials like granite etc. That number doesn't seem to jive with most of the estimates I have been given though. I know you have to pay for quality but I don't think I should have to pay retail for quality if I am also providing volume as a compensating factor.
I feel like there are opportunities that I am missing out on because I don't have a good grasp on estimating rehab costs. I am good at spotting what work needs to get done but not good at pricing that work out off my head. Do I just need to find different contractors that match the "$20 per sqft" model or is that rule of thumb just a wives tale?