Thinking of buying but before I put an offer, should I...

[Armando Arias Jr.]

Ok I have a lead on a single family. I've done comparables, research on the avg rent and some analysis on cost of repairs. Along with other calculations as far as analysis of deal. 

scenario: Buyers Agent sent me the lead. I think its viable. Agent asks me when do I want to walk the property.

question: do I search for and hire a contractor to walk the property with us so I have an accurate estimate of cost or should I wait for the due diligence phase of the deal?

[Alex Fenske]

As an experienced investor I would not lock up a contract and commit funding if I did not have some sense of who was going to do the work. That is a critical - and often difficult to achieve - ingredient in your plan, and one that has only become more challenging with changes in the labor markets the last couple of years. If you aren't able to get someone out quickly enough, or you are but the quote or the contractor are unacceptable, you'll be in a tough spot.

Another critical ingredient is an accurate projection of the renovation costs. Underestimating on a BRRRR can change everything. If you planned to buy for $250k and land all-in at $325k with an ARV of $435k and a 75% LTV cash-out refi, then all is well and you figure you'll end up with all your cash back. If the renovation turns out to be $100k and you land at $350k, you're stuck leaving $24k in the deal. If this is your first one, that gap may prevent or delay you from doing the next one. When starting out it's best to have a contractor - one you intend to use - bid out jobs for you before you sign on the dotted line, assuming you can find one to work with you in that manner. Eventually with more experience and more risk tolerance you'll be able to get a close-enough estimate to enter negotiations, then bring the contractor in either during due diligence or if negotiations get tight enough that you need to bust out the scalpel.