First investment strategy

[Mike Sfera]

As somebody new to REI, what is the best way to handle rent lost when buying a fixer upper during the work? Do you get a contractor in before making an offer/after, get an estimate on the work and time and then deduct the lost rent (making an assumption on what you can rent it for) from your overall budget?

[Robin Simon]

Quote from @Mike Sfera:

For example lets say my budget is 100k for the down payment and the work.  During the work i konw that there wont be any rent.  So, my budget then would have to take into account the rent i wont be receiving and i'll be paying the mortgate and expenses out of pocket.

 Yes - you should budget all the associated "costs" with the rehab including renovation costs, holding costs, selling costs, etc.  No income should be part of this underwriting