guessing rehab costs from pictures

[Bobby Forsythe]

Hey guys and gals! so I am having a really hard time estimating rehab cost. Can you please tell me how you learnt how to accurately quote in the beginning of your real estate journey. Especially from pictures which is the hardest part for me. which makes me trigger shy. I do already have an investment property but it was such a good deal anyone would have known it. Can someone please give me some pointers. When I see what some people did their rehabs, the numbers seem way less than when i call a contractor and get an estimate. Thanks everyone. If it matters I'm in Huntsville AL

[Joshua McMillion]

@Bobby Forsythe

I have done two REHAB projects in that area and currently live in one. I plan to rent once we move. We have been pretty close to the rehab costs for both projects, with some slight cost overruns due to unforeseen surprises. Bottom line, find several contractors you would want to work with, and for part of your diligence period, have them walk the property and provide quotes. We have done that twice with success. Be upfront on what you want and also ensure you state the facts in the contract. If a contractor is not willing to modify the agreement, I will not do business with them. 

An example of a contract modification is adding an incentive for a schedule. For instance, if McMillion Construction completes all work at or before the ten-week mark, a $1,000 incentive fee will be paid directly to the contractor. However, if the contractor fails to achieve this, the $1,000 incentive fee will be removed, and a $50 penalty will be applied to the agreement to balance daily until all work is performed. 

Sincerely, 

Josh