OK, so you bought your first (or second) ugly duckling house at a great discount! You’ve visualized it as a prince and calculated the after repair value (ARV). You’re excited about the profit when you sell it but wait…
…there’s the rehab project to get done.
Get your ducks in a row with respect to what the repairs costs should be, as an investor. Remember, you represent a steady stream of work, for potential contractors.
Even if you get multiple bids – you still need to know the going wholesale rates for certain key items. Hint: You’re not a retail customer so don’t accept retail prices. Get contractors to agree to your acceptable rates in advance.
Use a repair estimator (of some sort) to gauge typical repair costs for materials and labor. You can also use this estimator to help determine what to pay for a house in need of repair. We’ll show you how in upcoming episodes of our podcast show.
Understanding what repairs should cost will help you determine how much to pay for a house and keep your materials and labor expenses under control – both will make you more money!