Rehab Estimation Mobile Apps or Websites?

Question

Hi everyone! I'm a new (brand new, no properties YET) real estate investor in the NE Houston area... Humble, Kingwood, Atascocita, Huffman, Crosby, etc. I've been feeding myself through a fire hose the last few months on real estate investment, mainly the BRRRR method. One issue I keep running into as I practice running analyses on the calculators is estimating rehab costs based on photos of properties I find on Zillow, Redfin, HAR, etc. Are there any accurate and/or "legit" mobile apps available that I could use to plug in things like "drywall 700 sqft" or "roof on a 1500 sqft home" or something like that? Or maybe hidden-gem websites that could shed some light on this? I've found a couple sites that will break down costs based on "national estimates", but when it says "average kitchen remodel is $4,000 - $18,000" that really doesn't help much.

The only other thing I can think of is dragging a contractor out to these locations each time a house strikes my fancy, but that seems counter-productive since 99% of houses aren't going to be investor-friendly deals. Eventually I hope to gain enough experience to look at the images and guesstimate the rehab costs, but I'm not there yet.

Thanks!
Brad Turner

Thanks! Brad Turner

Nolan Gottlieb · Answer

I personally think you have taken the right first steps...I also think you're getting a bit ahead of yourself (I'll explain below). I totally understand the "drinking from a fire hose" feeling, I've been there! Here's a list of suggestions that I'd start with:

1. Read J Scott's book on estimating rehab costs. It's a great book on the process.

2. Get a lender (or bank) to pre-approve you and give you a purchase price and rehab budget that you can work in. This is why I said you may be getting ahead of yourself :/ You may already have this, but didn't mention it in your post. Unless you know what your budget is, there's no point in running numbers and pricing out plumbing, electrical, etc. unless it's just recreation.

3. Talk to and build relationships with contractors. Internet quotes also don't mean a thing. If you don't know any contractors, google a local plumbing company (or any trade) with good reviews and call the office...tell them you're bringing lunch by their office and sit and talk to them for the 30 minute lunch break or pay them for an hour of their time to ask questions. They won't be able to give you accurate quotes on anything unless they see a property, but they can explain how the process generally works and what pricing looks like.

4. Find a good buyer's agent in your area and start looking at houses in person...after you've gotten your pre-approval, of course ;)

5. Now run your numbers!

6. Start making offers.

7. Win said offers.

8. You will learn more in the first few days after closing than you will in months of hypothetical investing.

Hope that helps :)

Eliott Elias · Answer

You do not have to be extremely specific when it comes to estimating your rehab costs during initial due diligence. I would have conversations with investors, contractors, and realtors in your area on what they are seeing rehab wise. Once you get acquainted you will have a general idea of what things cost, new AC=$8,000 Roof=$5,000 Foundation=$10,000. These numbers should be a over estimates and give you an idea if the deal is worth looking at.

Bruce Lynn · Answer

If all else fails...do a google search and this was the first result on BP....looks like there is a free downloadable Google Sheets form that might work for you.

My google search was                 rehab estimator google sheet

This was the result.

Simple Rehab Repair Estimate Spreadsheet/Formhttps://www.biggerpockets.com/...

Bill Robinson · Answer

Brad,

Talk to a hard money lender.  I’d hate to see you tie up that much capital in your first deal.  It might take longer than you plan to refinance and recover that capital for the next deal.

Bill

Megan Mains · Answer

@Brad Turner bluehammer.com

Kerry Baird · Answer

A lot of talk about the renovation side of things above, so I want to put in a word for the business side:

Good job getting the business plan and docs (for LLC?) filed with the TX SOS.  We run our Texas rental properties through a TX Series LLC. Run your operating agreement past your CPA to ensure it works for your partnership and tax plan.

If you use financing, your lender will want to see the certificate of filing (for corporate use) or articles of organization (LLC).  Open a business checking account.

Jason Silvenis · Answer

When you are trying to decide on an investment, I go high on my estimates and a 10% contingency to the estimate. For me, I dont do detailed work on scope of work until I have the house under contract. My offer contingencies allow me to inspect the property and do a full cost estimate. If I find that I offered too much I submit a counter offer noting the issues/ cost that need to be addressed. If they reject my counter offer, then I am free from the contract. No money lost and a ton of time saved.

Brett G. · Answer

@Brad Turner

I have used Homewyse for ballpark estimates.  It is a useful tool to get an idea of costs for different tasks.

Brad Turner · Answer

@Bruce Lynn I've always been an excel guy and didn't occur to me to search for a Google Sheets. Reckon I'm going to learn Google Sheets! Thank you sir, much appreciated.

Brad Turner · Answer

@Bill Robinson Have a couple lined up now!!

Rehab Estimation Mobile Apps or Websites?

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