Freehold, NJ · Member since 2021 · 77 posts · 43 votes
Since I'm just starting out and don't know rehab prices, I will be wanting to bring either an inspector or a GC with me to view properties. What are your best recommendations for either in the central New Jersey area? Thank you.
David, my recommendation would be to close on the property first. Most GCs are not going to want to waste their time if you don't even own the property or have an idea of what you want to do.
I would caveat this statement to say, if you're "ready to go" then there is nothing wrong with this. This would mean you've found a suitable property, you can reasonably estimate it yourself within +/- 25%, and have all funds lined up, I assume a GC would be OK to walk through. The problem right now is that most, if not all GCs worth their weight are slammed right now.
For my BRRRR I brought in a few contractors during my walkthroughs, before I picked up the property. Their estimates help me make an offer on the property that was appropriate, and gave me a range to be in for purchase.
You can also pick up a few books to help you estimate. I'd say on the whole, if your class B/C, a bathroom can run up to 10k, kitchens up to 15k, and electric/plumbing perhaps up to 20k. If its purely cosmetic the prices go down. I do agree with David that you should have some idea walking in (the reasonable estimate +- 25%) because when you do eventually get that break down, and can compare, some guys will pass reasonability, and some won't. I had a contractor for a property quote me similar pricing for everything, but had 20k more built in for framing and drywalling, which I thought was excessive because the drywall in the property was in good shape and just needed a skimcoat.
Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
5y
David, my recommendation would be to close on the property first. Most GCs are not going to want to waste their time if you don't even own the property or have an idea of what you want to do.
David, my recommendation would be to close on the property first. Most GCs are not going to want to waste their time if you don't even own the property or have an idea of what you want to do.
I would caveat this statement to say, if you're "ready to go" then there is nothing wrong with this. This would mean you've found a suitable property, you can reasonably estimate it yourself within +/- 25%, and have all funds lined up, I assume a GC would be OK to walk through. The problem right now is that most, if not all GCs worth their weight are slammed right now.
For my BRRRR I brought in a few contractors during my walkthroughs, before I picked up the property. Their estimates help me make an offer on the property that was appropriate, and gave me a range to be in for purchase.
You can also pick up a few books to help you estimate. I'd say on the whole, if your class B/C, a bathroom can run up to 10k, kitchens up to 15k, and electric/plumbing perhaps up to 20k. If its purely cosmetic the prices go down. I do agree with David that you should have some idea walking in (the reasonable estimate +- 25%) because when you do eventually get that break down, and can compare, some guys will pass reasonability, and some won't. I had a contractor for a property quote me similar pricing for everything, but had 20k more built in for framing and drywalling, which I thought was excessive because the drywall in the property was in good shape and just needed a skimcoat.
Freehold, NJ · Member since 2021 · 77 posts · 43 votes
5y
Thanks, Peter, but as a noob I would be extremely hesitant in contracting without knowing the approximate costs. Margins are thin enough without me making a 10K or 20K underestimation.
Freehold, NJ · Member since 2021 · 77 posts · 43 votes
5y
Thanks, Joe. Of course I would get as much info as i could on my own, but I know from LOTS of past experiences that book learning and real life are two different things. Especially for my first couple of times I would want (and be willing to pay for) a little hand holding.
Thanks, Peter, but as a noob I would be extremely hesitant in contracting without knowing the approximate costs. Margins are thin enough without me making a 10K or 20K underestimation.
Therein lies the problem. As another guy said, GCs are slammed right now (that is a hat I wear which is why I chimed in) do not take this the wrong way but we don't have the free time (literally, free to you, costs us money to be there when we can be doing something else) to hold your hand and give you an estimate of a house you MIGHT buy. Puts you in a tougher spot but your realtor can also help you get a ballpark idea of costs. Or at the very least if you are going to close in a few weeks that is much different than not even being under contract or past the home inspection.