How to determine rehab cost ( prior to seeing it in person )

[Julio Velazquez]

Hello BP,

So I have a few questions, I’m trying to analyze deals just to get a better understanding of how to do it so I can feel more confident when I’m going into my first deal..

Now I understand that when you’re flipping the

Equation is ARV-rehab-fees correct?

If I'm looking at a MLS or on foreclosure.com

How can I determine more or less the rehab

Cost just by pictures? Is there a formula for that? Yes I do understand that it’s not going to be accurate and this would all be a guess. Am I wasting my time by doing this? Is the only way to actually go see the property with a contractor to get a general idea and then do the math?

Thank everyone in advance.

[Brian Pulaski]

Even seasoned investors need to view the property. Most wont need contractors or bids, but you do need to see what the house looks like. I could make anything look good in photos, yet there could be mold/rot/termites/broken pipes/aluminum wire/broken this/damaged that... all things that a photo won’t show, but very well may need to be addressed and may cost $$$.

Seller may say roof doesn’t leak, and photos look ok. You get there and there is rotted sheathing, 4 layers and it is 40 years old. 

Wiring looks good in photos and seller says it’s good, until you see a Federal Pacific panel after you get there. Not a huge expense but thousands in my area. 

Replacement windows in photos... awesome. Get there and they have busted seals, were installed wrong and don’t shut, leak, need to be replaced. That could be a $10,000 miss.

These are just a few things I have had happen when I see photos and then see the house. I personally run my spreadsheet via photos. I then go to the house and confirm what is good/bad and adjust the spreadsheet from there. The initial spreadsheet has me determine if I even want to see the house. Then it’s tailored and an offer goes in only after I have been able to inspect.