Initial rehab estimate

[Konstantin Podyachev]

Hello guys. The newbie question here!

I’m currently looking to buy my first fix and flip property and had a question about initial estimate repairs cost. 
I’ve heard it’s the best to have the same scope of work passed over to several contractors and compare their estimates apples to apples. But how you get that initial estimate to price the deal right at the first place?
Calling an inspector for every walkthrough could be quite expensive, and calling contractors for every walkthrough could be quite exhausting for them. 
Or Maybe I’m looking at the logistics at the wrong angle? Please feel free to share your workflow when you don’t have a trusted contractor yet, and a lot of experience. I would appreciate the help. 

[Andy Sabisch]

If you have never done a fix and flip, there is a lot to learn to avoid making a mistake when you do an estimate which in turn dictates your purchase price.  Since you make your money on the front end, that initial estimate needs to be pretty accurate (with contingencies built in) or you will find yourself in for an expensive lesson.

Here is the thing that many new flippers find out . . . they can't get contractors to give them estimates which are needed to make an informed offer.  Why?  Well they are in business and the business is not driving all over town giving estimates on the hope that 1) you get the property and 2) you choose them to do the work.  They have a limited number of hours in the day that need to pay off and "fishing for flips" is often not of interest to them.  Now once you have a few under your bet and the contractors know you are serious, they will be more likely to get with you for your estimates.

As has already been mentioned, BP has some great guides that can get you moving in the right direction.  But you need to have some understanding of building materials, permits in your area, costs of material and contractor markups (again in your area) for the material to be truly helpful.  The rehab estimators are very rough estimators and even with them you need to know what to adjust and why in your area.  Costs fluctuate like the stock market so some of the guides / tools out there are using pre-pandemic values which will sink you in a heartbeat.

Have you looked in local REIGs to see if you can find a local flipper or contractor that you could shadow on a few walk throughs?  You need to connect with someone or what you will find is that the great deal you think you are buying wilt turn into the first expensive lesson you get from flipping.  

You will find that the BP family will be open to assist you but you need to start with a foundation before worrying about putting a second story on that house :)