Estimating Rehab Costs

[Matthew Johnson]

All, I'm excited to hear from some experienced investors related to this topic. I've spent quite a bit of time watching podcasts and doing research in preparation for starting this new journey. I'm in a good place financially to get the ball rolling, however, I'm struggling with how to determine rehab costs for properties in rough shape and also what properties to stay away from. For example, I think I have a pretty good understanding of how to analyze deals but I seem to stumble when I have to include the rehab costs as I have no experience in this area. Some people (Clayton Morris) make it seem so simple and estimate rehab costs from 20-25k which includes a new roof, new electrical, plumbing, boiler, water tank, windows, dry wall, paint, carpets/flooring, etc. How can I learn more or become more experienced in this area? Thanks Matt

[Will Barnard]

I suggest you do a search for this very same question that has been asked hundreds of times here on BP. Most recently asked here where I and others gave some detailed responses: 

https://www.biggerpockets.com/forums/67/topics/373...