CAN'T SEE THE INSIDE FOR REHAB ESTIMATION... WHAT NOW?

[Amber H.]

Hi, BP,

I found a property in a pretty rough/up and coming area in Tampa that I need help with. I have estimated ARV as roughly around 185K. I am unable to view the inside of the home, so I have no clue what rehab costs may be. I am thinking if the rehab costs are at most 100K, I can comfortably have a MAO of 55K. Of course, I would start negotiation around 45K or so.

If any of you can help to guesstimate what's the worst possible amount to spend on rehab, OR if you can tell me what you've done in situations like this, OR tell me if I'm way off, please leave a comment below. 

Thank you guys!
Amber

[Ray Johnson]

@Amber H. This is going to be determined by what type of investor you are. There are a lot of gamblers and high-risk investors that would lowball the price and then price for a worst case scenario for the interior of a certain square footage and planned use. I personally wouldn't do the deal if I can't do it my way which is knowing exactly what I'm paying for in a property.