Remote Real Estate Investing; Estimating Reno Costs

Remote Real Estate Investing; Estimating Reno Costs

Boston, MA · Member since 2018 · 6 posts · 1 vote

Hi everyone. New member here looking to get started in buy and hold rentals. I'm having some issues wrapping my head around how to get renovation cost estimates when investing remotely, or even in my area. I live in Boston, but have some realtor connections in upstate NY and Houston, TX. 

I'd have no issue driving over to NY to check out the houses myself or having my realtor connections send pics, etc, but what is the typical process for getting contractors to provide estimates before actually buying the house. I've read a few posts and watched a lot of BP vids on estimating costs, but was hoping there was a way to get an exact number before buying a house. 

Is it typical to get in contact with a General Contractor and have them visit the house with the realtor to give an estimate? Also, if I'm trying to get multiple GC bids, my thought was to have them all show up at the same time to get a walk through of the house with my realtor and provide me bids after.

Is this the common practice? I just don't want to have GCs show up to a house if it's not commonplace, but I'm also not comfortable with buy house that needs TLC, without getting close to exact numbers for renovation costs. Looking to use BRRRR as my strategy.

Thanks in advance.

1Reply
13 views

Most Popular Reply

Rental Property Investor · Culver City, CA · Member since 2012 · 403 posts · 246 votes
8y

Just have your GC visit the house. Put the GC in contact with your agent to get access. That is typical. You need to get exact numbers and that is really the only way until you get a lot more experience. 

I would not have a bunch of GC's show up all at once. They tend not to like that or at least that was my experience. 

It's good to have another person to follow up on the GC's work too. Whether that's your realtor or your property manager you want boots on the ground to oversee/confirm the contractor's work. You need to be sure you're getting what you're paying for. 

See this reply in the discussion

5 Replies

Jump to latestLatest
  • Rental Property Investor · Haverhill, MA · Member since 2017 · 290 posts · 185 votes
    8y

    Stay local.  There are still areas in mass that you can get properties for a reasonable price.  Much less of a headache. 

  • Rental Property Investor · Culver City, CA · Member since 2012 · 403 posts · 246 votes
    8y

    Just have your GC visit the house. Put the GC in contact with your agent to get access. That is typical. You need to get exact numbers and that is really the only way until you get a lot more experience. 

    I would not have a bunch of GC's show up all at once. They tend not to like that or at least that was my experience. 

    It's good to have another person to follow up on the GC's work too. Whether that's your realtor or your property manager you want boots on the ground to oversee/confirm the contractor's work. You need to be sure you're getting what you're paying for. 

  • Real Estate Agent · Albany/Schenectady/Troy, NY · Member since 2016 · 74 posts · 35 votes
    8y

    You might have better luck getting someone out to bid once you at least have it under contract. Contractors don't want to waste time doing a bid which will take them several hours on a house you may or may not buy. Good contractors are busy and good MLS deals go too fast to get formal bids. I would start watching @Mark Ferguson InvestFourMore videos on YouTube and pick up @J Scott book on estimating rehabs in the BP store. Both of these helped me before jumping in on my first BRRRR. If you have any specific questions on Albany area shoot me a PM.

  • Real Estate Agent · Westboro, MA · Member since 2016 · 1k+ posts · 471 votes
    8y

    @Marco Fontana

    There are areas in Mass you can consider but its always good to keep your options open. 

    If you are close enough, you can also look into self managing. 

    J Scott has two great books to look into for rehab costs and flipping houses 

  • Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    8y
    Originally posted by @Brian Rosher:

    You might have better luck getting someone out to bid once you at least have it under contract. Contractors don't want to waste time doing a bid which will take them several hours on a house you may or may not buy. Good contractors are busy and good MLS deals go too fast to get formal bids. I would start watching @Mark Ferguson InvestFourMore videos on YouTube and pick up @J Scott book on estimating rehabs in the BP store. Both of these helped me before jumping in on my first BRRRR. If you have any specific questions on Albany area shoot me a PM.

     Thanks for the mention!

Join the conversationCreate a free account to reply, vote on answers and follow this thread.