How do you cost a rehab?

[Jenna Lee]

I am a new investor that's really trying to get into real estate investing and I am so happy to have found this forum.

One of the market that I am looking at have tons of distressed properties that are either a teardown or in need of major rehab. 

So as an investor, when you go into a potential house that you want to purchase how do you estimate the repair cost? Do you usually bring a contractor with you when looking at potential homes? Is there services that you use that give you those figures? Or is there a software that you use help create cost estimation for you?

[Kenneth Garrett]

@Jenna Lee

There are a few ways to calculate rehab.  If you have never done rehabs and really don’t understand it you will need a contractor, home inspector or other professional to help you.  There are programs out there, but I am not a fan of these as there are so many variables.  

If you a local REIA in your area you should attend and go on property tours, they will show how they acquired the property, what kind of rehab they are going to perform and there budget, sale price and of course profit. When I am helping people I have them go to Home Depot, Menards, Lowe's or whatever store they like and start learning what materials cost. You will need to learn how much things cost so you can determine if you are being over charged for material and labor.

I can send you a worksheet we use for beginners in you are interested just pm me.