All Forum Posts by: Alina Beryh

Go to the book section of BP and order J Scott's books on Flipping Houses and estimating rehab cost. You will find a detailed break down of work and specific costs, close enough that you can at least create a budget and make a decision about an offer.

However, I would recommend start with something more simple than a large 5BR home. In our area bread and butter for flippers are 100-200k 3BR/1.5BA ranch homes. They are much easier to work on. You should make a 15-20k profit, but if you make mistakes, chances are the check you will have to bring to closing is not going to wipe you out.

The other option is to partner with an experienced investor - you will do all the work and split your profit - but thats the best education you can get. 

@Alina Beryh

When I do flips/rehabs for my clients (especially foreclosures), I charge time & materials. Once you get in there and start opening things up, you never know what you’ll find. I simply won’t put a price on bringing a house back into shape. It takes to much time to try and figure everything out, and there’s always more. 15 years in business and my clients are thrilled with my work. I’ve known quite a few contractors get burned quoting whole house rehabs. Example- I’m finishing a house now, owner guesstimated about $5k, “only needed some fixing, paint, carpet”. Ended up being all new plumbing, broken radiators, all new windows, etc on top of the initial thoughts. A typical house I rehab, figure 1300sq ft, ends up around $25k. Sometimes more or less, but that’s taking a dump and turning into something flippable or higher end rental. Good luck in your endeavors!

@Alina Beryh check out the book on flipping houses by J Scott Its on the BP store It has oodles of InformatIon on cost estImatIng. That should st least gIve you enoIgh InformatIon to decIde to purchase the house. Make sure you set a 5-10% contIngency In your budget. Once that is done then it’s just finding the people to do the work. You will know how much you want to spend in each category and you can go from there!

Good luck!!!

Take on a mentor from your local REIA or ask members to help or JV on the deal.

I'm in NJ.  I also have had a good response by asking for recommendations on Facebook. Ask your friends who knows a reliable licensed/insured contractor. This way it's more of a warm transfer referral. I'm sure they'll come to give an estimate if when u talk to them U say "any name" knows you and referred me to you. Now if you are getting the place use who give the best bids. If u keep using the same people for bids and never give them work I'm sure they will start to ignore you.  Over time if you continue to rehab houses you'll build relationships.  And probably be better at ball parking rehab costs your self. 

@Alina Beryh Around my area most contractors will give a free estimate. Non have ever asked me if I own the house. And if I have the lock box code how do the know I do or don't own it. Maybe we are closing that day. I'd just tell a contractor you have a house/rooms that needs rehabbed and you need an estimate. If they want the job they'll come.

You can get a rough idea / a range from sites like costhelper.com.

Get 3-4 contractor bids for the same job, you will probably get 3-4 different prices, and things can change mid stream.

Or, my friend Stimpy says he will do the whole job for 1 million doll hairs. ;>)