First Rehab: WHERE TO START???

[Justin Rockitter]

I am in the process of searching for my first brrrr investment. I found a duplex and after analyzing comps and having my realtor estimate rehab costs, it seems to be a good investment. I am using a hard money lender. What are the steps I should take to get a solid estimate for ARV and rehab cost. Do you suggest I bring in a contractor for a bid? Do I even have time to bring in a contractor for a bid? Do I just take my realtors estimate and add 10% for a cushion? I know there is also a time crunch and I am a little overwhelmed with how to analyze this deal and have it approved by my lender in time before someone else snatches it up (if I do end up wanting to buy it of course).

[Ned Carey]

@Justin Rockitter I believe in knowing your market. Look at LOTs of properties. Look at all kinds, open houses, FSBO, auctions, listed properties, Wholesalers deals etc. Take every opportunity to visit other investors deals and ask them what they are going to do to it and whet the numbers are. If you pass a house being worked on stop and talk to whoever is inside.

I have heard this called the 100 house rule. "Until you look at 100 houses you don't really know your market."  I think this is what @Michael Plante is saying

If you go to an onsite auction talk to some of the bidders and ask how they evaluated the property and why they bid what the did.

In the mean time I would not trust a realtors numbers unless they specifically work with investors a lot or flip themselves. Yes i would bring a contractor in to bid. Since you don't own the house yet expect to pay them for the estimate. But look at it as an education.