Rehab estimate when analyzing BRRRR deals
When analyzing out of state deals on MLS or Zillow, how do you estimate your rehab cost? Is it based off the photos or virtual tour available online? What if little to no photos? According to some BP posts/webinars, one should try to analyze about 10 deals daily to practice/start.
How would you know if this BRRRR deal is right without getting a somewhat reasonable rehab cost before placing an offer? I'm a total rookie so I have no experience whatsoever in estimating a rehab cost. I've read J Scott's Estimating Rehab Costs book but it seems more relevant when someone has access to property or when you have an inspection done during the contingency phase. What am I missing here?
Most Popular Reply
Definitely as others have said. You need boots on the ground. If you are having a contractor go look at the properties for you, pay him an hourly fee for his time. If you buy a property out of the ones he has looked at, have that time factored into the job costs. If you are looking at a larger deal, I would personally view the property myself with the contractor.