Estimating Rehab for Apartments

[Michael Arrieta]

My Apartment Investing course tells me to estimate rehab costs for the offers by asking the broker if there is a per door rehab cost especially for capital expenses. Rule of thumb apparently being $250/door. Then in due diligence phase get an inspector and contractor to draft proper costs. If they're different go renegotiate the price or get out of the contract. 

Is this a good suggestion for everyone out there? Makes me a bit uneasy to approach it this way

Thanks for the clarification

[Tamiel Kenney]

Hi Mchael Arrieta!  We invest mostly in Dallas and are expanding to Atlanta.  We underwrite our deals with $3,000-$4,000/door for rehab and adjust this number higher or lower after due diligence.  We also buy Value Add properties with a plan to sell after we double the investors money within a 3-5 year period.