Looking for Tips on How to Calculate/Estimate Rehab Cost

[Justine Veal]

Hi everyone, 

I am new to investing and am looking to buy, rehab and hold my first duplex in Chicago. Right now I am confortable with properties that need cosmetic rehab. However as a first time buyer I'm not sure how to calculate possible costs. What system(s) or formula(s) do you all use to estimate rehab costs before purchasing a property.  

[Dave Spooner]

@Justine Veal I'd also recommend getting 3+ bids on the project and do not jump at the lowest one. Interrogate why it's lower, especially if it's far lower than the others. Also, get an understanding of how they handle change orders - that can drive unexpected costs.

Make sure the bidding process is independent too. Good luck!