Estimating Rehab Costs when Applying the 70% "rule"

[Miles Stanley]

Hello BP community!

So I have seen many webinars, videos, podcasts, etc. that discuss this topic. I realize that the 70% “rule” is useful/applicable only when browsing many properties to essentially weed out the ones that aren’t worth pursuing further.

What I see repeatedly is when it comes to the point of estimating the rehab costs…the presenter of the topic says something to the effect of “let just say the property need $10k in repairs…) and they move on to the next part of the calculation.

My question is, how do you go about applying this method when it seems the process of estimating rehab costs is based solely on looking at a few pictures (if even available) and saying “ehh $10k looks about right”?

I’m sure a seasoned investor can certainly make these types of judgements, but what about the noob?

Thanks,

Miles S.