How to evaluate rehab repairs?

[Chad Reott]

Hi guys,

I am new to the investing game and looking to focus on rehabs and flips to start out. I am aware that a major focus in doing rehabs and flips is to accurately assess the repair costs that are needed to rehab the property.

In doing research, I have come across referrals to use the Craftsman Costbooks, but they have 3 options to choose from:

• National Construction Estimator Costbook
• National Home Improvement Estimator Costbook
• National Renovation and Insurance Repair Estimator

Does anyone know which of these 3 would be most beneficial, or should I consider purchasing all 3 versions?

Any input is much appreciated!

Chad

[J Scott]

Rehab costs can't be estimated on a "national" basis. Even trying to estimate on a local basis will likely prove fruitless if you don't have a LOT more information.

Just some of the things that go into your actual costs will be:

- Specific Location
- Specific Contractors (Retail or Investor?)
- Level of Finish
- Type of House
- Time of Year
- Specific Building Codes

BiggerPockets recently published a book I wrote on estimating rehab costs, and like I point out in the book, while it's quite possible to put together a detailed methodology for estimating costs (that's what the book does), it's impossible for anyone to accurately estimate what someone else's costs will be without knowing at least the information above.

And I'm not talking about minor differences in prices. I work in multiple cities, and to rehab a house in one city could literally be 50% more or less than the exact same rehab in another city with different contractors during a different time of year.