Establishing rehab costs during short open house

[Marcellis Mosby]

I’m new to house flipping but have extensive experience as the owner of a successful property damage restoration company. This gives me access to a large network of skilled contractors, including plumbers, HVAC specialists, electricians, and general contractors.

I’ve identified a promising opportunity with an auction property, but I’m unsure how to accurately estimate rehab costs with only a small window to do so. The challenge is that the property only has a one-hour open house the day before the auction.

Here are the details:

• Opening bid: $100K

• Hard money lender financing: Up to $220K (with my 20% deposit and 100% renovation costs covered)

• Comps in the area: $485K–$510K

• Estimated rehab (based on pictures): $125K

Obviously, this estimate could change significantly once I see the property. My question is: during the one-hour open house, what’s the best approach to determine an accurate rehab budget?

• Should I bring some of my contractors to get their input?

• Can I bring a home inspector, or is that generally not allowed?

• How do I ensure I have enough information to provide a realistic budget to my hard money lender within 24 hours?

Any advice or strategies would be greatly appreciated. Thanks!

[Peter Mckernan]

I would bring the contractor with me on that viewing to get the full bid.. If you can do this, that would be best! Even if it is just a walkaround and not measuring anything; the contractor should be there if you are new to this to give you an estimate..