First REI deal looked promising but rehab costs keep growing

[Account Closed]

Calling out to all investors...How many of you thought you had at least a base hit on your first property and then, in the end it turned out to bite you (financially speaking). I am in the process of buying a foreclosed duplex in a good location where the market is very robust. I thought that would justify paying a little more for it (122k). I ran all the number six ways to sunday and thought I would do ok...because I thought rehab costs would be less than 100k. Now they keep ballooning, past 100k, past 150k. I have not closed yet and I’m starting to think I should bail some how...I only have a 3.5% down payment but it’s hard to figure out how this is going to cash flow when the complete rehab is done. Any advice??? I don’t want my first deal to kill my momentum.

[David Robertson]

If you are getting quotes from Contractors I would ask for a cost breakdown of each major repair (roofing, windows, doors, paint, cabinetry, flooring, etc) so you can see where you are spending your money and make educated decisions on whether or not those repairs are worth the investment.