Good ways to estimate repair costs

[Steve Pangborn]

Hey guys and girls,

I'm soaking up a lot of info here and one thing I keep running across is the need to put down accurate repair numbers. For someone such as myself which doesn't have a RE background or a background in construction trades, this is a bit difficult to do. I understand that as I gain experience this will come easier, but until I put the first few deals together I'm looking for some good ways to be able to pin a respectable estimate together for repairs.

Searching through the forums a a little bit, I've found a few things I can do but none of them seem very comprehensive and the ones that do, usually require something else I lack whether it be connections of funds. Here are a few ways I've seen it explained so far through a few forum searches:

* Hire a contractor to give a hard bid at around $100 bucks or so.
*Use a formula involving sq. footage of the house. Won't be accurage but will be a starting point.
*Chat up any GCs or crews I see while driving around trying to make connections to get discounts on bids/future services.
*Walking around local stores such as Home Depot or Lowes to get a feel for material costs.
*I've also heard that there are books which will tell you repair costs? The info on this was not really complete.
*There are for sure worksheets on this site which will help me focus my repair estimates, which I appreciate. Doesn't help me out without knowing what costs what though.

So starting out, it seems the most reliable, comprehensive way to do this is to go ahead and hire a contractor for a hard bid. Then again, that $100 or more for every bid, whether or not I pick up the property. (At least until I bug/do enough of them that I learn how to do it on my own) Problem is for a newbie like me I don't really have funding to shell out on that before I make my first deal or two.

Anyone have advice on a better solution?

[Justin Silverio]

The method I think will return the most accurate results:

1) Build a relationship with a contractor. Call some in your area and tell them what you are planning to do. If you have a clear vision about what you want to do and can get this across to them, they will recognize that you are serious and should be happy to help along the way. Also, building a relationship with a contractor early on will make life easier once you do close a deal.
2) Ask the contractor to take you through a job he is working on. While you at his site, ask questions about the pricing of that job, how long it took, if he was on schedule or not, if he has subs he uses, what their hourly rates are, etc.
3) Call vendors/sub-contractors for pricing - cabinets, finish material, cost per sq. on a roof, new HVAC system, new electrical system, hourly rates.....

Your goal in doing this is to get a good sense of the cost for the big ticket items and how much contractors charge as an hourly rate. This should provide you with enough information to give you a more accurate estimation than any book, or $/sq. ft.

If you look at a house that you think the numbers will work based on your estimate, call the GC and see if he can meet you there. Tell him what you want to do and go over the costs with him. It's also a good idea to have a good inspector that has been in the trades and can offer some cost estimates.

Good luck!