High construction costs and buying distressed properties

[Melissa Perez]

Hello BP fam,

I am recently in the process of closing on an out-of-state turnkey property in the Cleveland, Ohio area and am already dreaming of the next one. I have been doing a lot of reading and research and am tempted to delve into purchasing a fixer upper in the Columbus, Ohio area and holding onto it as a rental and have been wondering how that might look like, given the crazy cost of construction right now.

Would love thoughts on what I can expect to encounter and if I should avoid projects that may be too much work? I am, to be honest, really scared and hesitant to try this but any and all feedback would be appreciated. 

Thanks!

[Brandon Sturgill]

@Melissa Perez there are increased costs across the line for some building materials, but not others...lumber is a bit out of control right now, but electrical and plumbing fixtures still cost the same, etc. If you are doing full gut-job renovations you'll realize some of the increased costs, but if you are doing heavy cosmetics, there is not a real increase right now...the thing you would need to be more concerned with is the appraisal on the back end...especially with transitional locations...I've heard some horror stories lately.