Calculating repairs on a house

[Joseph Ayala]

I usually estimate the repairs on the square footage of the home but someone told me that’s not how is done. Is that true or am I doing it the correct way?

[John Corey]

Originally posted by @Joseph Ayala:

I usually estimate the repairs on the square footage of the home but someone told me that’s not how is done. Is that true or am I doing it the correct way?

Correct? 

As a really crude, first estimate, it can work fine if you are consistently working in a specific market and price level. Rather than thinking something is correct, assume it is a rough estimate. When you find a lead that stacks up using the crude estimate, quickly switch to using a more detailed way to estimate. 

The key is triage. You want to quickly through out the dead end leads. Once you have a smaller list, you can invest more time. Then trim again. All of this before you walk through a property or invest a lot of time. 

It is an iterative process so reduce the risk you are chasing a dud.