Construction Prices and Profit

[Rita Banhunyadi]

I'm wondering if you can still make decent profit with rehab projects with real estate prices so high and construction material prices so ridiculously high. I've looked at a few properties recently where I was told the property is selling at a good price, but once the contractor gave the estimates all the potential equaty was gone. Maybe I just didn't find the one, but wondering if it's just not the right time for a non-pro.

[Evan Polaski]

@Rita Banhunyadi, in my market (Cincinnati, OH) you can find them, but they are not plentiful.  The latest rehabs my wife and I have done were listed properties but they were fairly major renovations.  Rewiring, adding bathrooms, fairly substantial exterior work.

From my experience, if you are only looking at MLS listings, the deals will require a lot of vision and renovation. Anything that only requires surface level rehab is selling prices where no profit is available, in my opinion. Of course off market deals can be a better source, but a lot more work (time and money) needed just to find the deal. And the off market deals I have either bought or the random wholesaler deal I see, requires extensive renovation as well.