2 Basic rehab questions

[Patrick Martone]

1. How can I improve my accuracy at assessing rehab costs?

I have an engineering background, but know little about estimating.

2. What permits or licenses should I consider when doing my own rehab work?

I know its varies by state, so lets use NJ for example. 

[Lee S.]

I walked my first property with a rehab cost list put together by another investor.  I had never done this before yet I was able to nail it.  Some things were over, some under but overall I came in almost exactly at what I had budgeted (60k).  I had a contractor walk the property and put together a bid which was ridiculous, I had him do the work but he became more of a subcontractor to me.  His 100k bid tuned out to cost 60k, imagine that.

I put in 5 hours a week average helping out to learn how to do a rehab.  After this first house I felt confident walking through a house knowing within a margin of error what it's going to cost.  Buy cheap enough that you can underestimate big time and still make a profit on your first 1-2 deals.

I would also advise you to only Invest in real estate that you can buy at a price that allows you to pay others to do the rehab.  Your time has value, do you want to be a paid laborer/carpenter or an Investor?  I refuse to touch another house again, my last house I spent less than an hour of my own time "rehabbing", I hung a mirror, replaced a lightbulb and touched up some paint on a door lol.  I'll pay professionals to do that and I'll spend my time finding the next deal at 70% or less of value, that is where the money is made!