Accurate Estimations For Renovation Costs Come With Time and Experience
Job Site Order Form- Right Click Link and Choose “Save Link As”
Hi,
Here is the first of many vlog entries regarding estimating the cost to repairs and rehabs. First, understand this: You cannot completely, EVER, estimate the accurate costs of a rehab to your rental property. You only see the top layer, and even with a home inspection, doesn’t tell you everything that’s hiding behind that wall or under that foundation.
With experience, each house gets easier and easier to estimate with, and there are a few tools you can use to make estimating the costs easier. There will be more posts to follow regarding this, but this is a good start.
Job Site Order Form- Right Click Link and Choose “Save Link As”
10 Comments
How do you buy your houses
Hi, Sorry I am just responding to this: There are a few ways. 1) You can raid your retirement accounts and pay cash -if a house is ~13k, thats not impossible if you have been saving for some time. I have more confidence in my hard work than a mutual fund 2) Get a conventional mortgage. At these prices, you have to call around (usually a credit union will finance a property this low, though probably for a 15 to 20 year mortgage). 3) Get a personal loan.
Its not hard to get a personal loan. however, if you do not have the best credit score, of course, a higher interest rate. You will have to rate that vs what your comfortable with vs future income. And, credit unions are VERY lenient about giving out personal loans. They actually make their money from their customers, not the stock market. So, between retirement, bonuses, tax refunds, and different financial products, you can purchase and repair a house for ~30k as a rental investment.
I think a lot of investors are tempted to scrimp on plumbing because they feel like it does not add value. Don’t do that – Do not fall into that trap! Spend the money on plumbing and have it done right the first time! A new stack pipe and hot water tank might not be sexy but it is worth every dollar. The house we just did in an inner ring suburb just outside of Cleveland the plumbing cost us a total of $1900. That includes a new stack pipe, new hot water heater, new copper piping, new laundry sink, toilet set by plumber, bathroom vanity set by plumber, new gas valve in kitchen, etc, etc. The plumber also walked through the house with the building inspector from the city when he came for inspection. This is an invaluable service when working in the inner ring suburbs because their building depts can be tough.Our plumber also will walk through any flip house we are interested in with us for free even before we buy it so we can accurately estimate the repair cost. Build a good team that you can trust and your life will be easier.
I like the “double the estimate” rule so true!
HELP! I have searched all over and I cannot find the Job Site Order form.
Can you provide a link please?
To Do List for each home rehab <---Check above.
Hey Lisa, another great video. But I have questions, as usual: What’s the
“layman term” difference between a rehabilitation and a repair? Also, does
any of them have depreciation value? Also, what suggestions do you have for
estimating foundation repairs?
how can you get on here and profess to tell people how to estimate repairs,
and then you tell them to double or triple what they had in mind, thats not
n educated estimate thats a wild guess. the only thing you said that made
sense was that experience was the best teacher, the rest of the info was
useless.
What is the name of the sit to find the Job Site Order form