What are the best ways to get estimates on contractors before buying a property?

[Derrek J Hooyman]

I just started using the BRRR method. I bought a side by side that needed a little work. I was not as familiar then with the idea of BRRing it. However, the bathrooms were outdated. Thus I will cash out refi after I renovate the bathrooms. I have a decent understanding of flooring and painting now. The bathroom will be roughly 5k if I do the work with my dad.

However, I'm struggling to determine the costs of rehab if I would have someone do it like drywalling and more extensive BRRRs.  Any advice on how to get better at estimating my rehab costs?  Also are there any ways to get a better understanding of how much it will appraise for?  For arv, I can look at comps.  Guess I could get some connections to contractors as well/.  Any advice?

[Jake Forehand]

Quote from @Derrek J Hooyman:

I just started using the BRRR method. I bought a side by side that needed a little work. I was not as familiar then with the idea of BRRing it. However, the bathrooms were outdated. Thus I will cash out refi after I renovate the bathrooms. I have a decent understanding of flooring and painting now. The bathroom will be roughly 5k if I do the work with my dad.

However, I'm struggling to determine the costs of rehab if I would have someone do it like drywalling and more extensive BRRRs.  Any advice on how to get better at estimating my rehab costs?  Also are there any ways to get a better understanding of how much it will appraise for?  For arv, I can look at comps.  Guess I could get some connections to contractors as well/.  Any advice?

 Hey Derrek. I am not a GC myself, but if you are wanting to learn more about rehab costs, you should walk properties with different GC's. While doing this, ask them what they are looking for when giving a bid. You will learn a lot by doing this.

They are probably going to take measurements for flooring and drywall, count any doors that need replaced, look at what appliances need replaced, outlets, fixtures, countertops, etc. It is very common that they will subcontract out some of the more specialized work. 

Reach out to a ton of contractors and filter out the ones you like best. Study prices in home improvement stores like Home Depot to get a good idea of what everything costs, and log it on a spreadsheet. You can do this online by looking at their catalog. Also study costs of roof replacements, furnaces and water heaters. Compare these numbers with the quote you are provided and you can find out what the markup is.

Pulling good comps for the property is crucial. You want to factor in location, condition, bed/bath count, and square footage. If there aren't any good comps in the area, I would move on and not take the risk.