Determining when rehab costs are too high

[Curtis Eckhardt]

Hello Everyone!

I'm trying to determine what a reasonable price investors are willing to put into a recent purchase. I've heard about the BRRR strategy on biggerpockets and the rehab part is still a mystery to me. If you are going to force appreciation, I'm guessing there's a way to calculate that and determine whether your rehab costs are too much and therefore the whole thing is a bad deal. Keep in mind this is using a general contractor or specialist to do the job. Maybe it comes down to only repairing things that are relatively cheap? What are repairs are generally considered acceptable?