Fix and Flip for the first time R.E. investor

[Biten Kothari]

Hello everyone, I'm considering a fix and flip in Tampa, FL. How do I estimate Rehab costs and holding costs? I'm trying to determine what offer I should make so ARV is important. This is my first foray into RE investing.

[Will Barnard]

First off, this is THE most common question here on BP and has been asked by many many people with many many answers. Do a forum search and you will find a ton of info on this. Both J Scott and myself have posted answers to this question many times and picking up his books is a great start too.

Here is a copy paste from another thread I posted:

"Essentially, you need to NOT rely on others (like contractors or inspectors) to perform this task, you need to know how to do it and after practicing many many times and using the right tools, you can eventually do it in your head in 15-30 minutes while walking through the property.

You need a spreadsheet (several free downloadable ones on the BP file place at the bottom of any thread page), fill in your local numbers for material and labor costs for each line item and then break up the home into sections. Kitchen, bath, flooring, paint, landscape, HVAC, electrical, plumbing, roof, stucco/siding, etc. Once you know the average general price for each area, you simply walk through, label your scope of work and add up the numbers. It is not rocket science but it does take lots of practice so get out there to open houses for fixers and start practicing once you have your spreadsheet filled in.