Real Estate Agent · Indianapolis, IN · Member since 2017 · 49 posts · 42 votes
I am looking at a house that's selling for 30k in the Atlanta area, comps are 150k. I have a hard money loan for 60k. I'm going to look at the house in the next couple days (the owner said he has to have it sold by April 3rd). It appears to have some roof damage that has affected the drywall in at least 2 rooms in the house. I wouldn't know where to start with estimates for that much damage and I don't know anybody who can eyeball it. Should I find a contractor and pay them to come out and assess?
Contractor · Atlanta, GA · Member since 2015 · 236 posts · 91 votes
9y
where area of Atlanta is the house at? A purchase price of $30k w/ comps at $150k sounds a little too good to be true for Atlanta. Sounds like you would gut the house, which should roughly be $30-$45/sqft depending on finishes. That doesn't include the exterior.
Contractor · Atlanta, GA · Member since 2015 · 236 posts · 91 votes
9y
where area of Atlanta is the house at? A purchase price of $30k w/ comps at $150k sounds a little too good to be true for Atlanta. Sounds like you would gut the house, which should roughly be $30-$45/sqft depending on finishes. That doesn't include the exterior.
The best way to get accurate rehab numbers is to get bids from a contractor who knows what they're doing. The best way to estimate rehab costs on your own is to take notes when the GC is walking the property. Outside of that, J Scott has a pretty good book on estimating rehab costs that gives you a pretty thorough explanation of how to estimate costs on your own. All in all, it will take some reading and ultimately real life experience before you get good at it. Estimating simply by square feet can be dangerous as no two properties or contractors are the same.
Investor · Atlanta, GA · Member since 2016 · 13 posts · 10 votes
9y
It seems like you have enough of a spread to cover most cosmetic defaults. Best way to estimate repairs is have an expert come in for every item you are looking to do. Also i would ask each of them a simple question; " Mr. expert thanks for coming out and giving me an opinion on X. I am going to have 2 other people come out to give estimates before i make a decision. What should i make sure to ask them about/ for and what should i make sure their estimates include so i'm comparing apples to apples?"