Philadelphia shells

[Mark Redmann]

ok folks. I would like to know what rehab costs would be in Philly for a shell. I am very new to wholesaling. I have a great realtor, plenty of houses to look at, and a list of cash buyers.

Every time I run a property through my little formula, something doesn't add up right. I get keeping a Max allowable offer of MORE than what the property is listed for. Maybe my ARV is off? Maybe im not figuring rehab properly on a shell? I am pulling my comps from Zillow, where I am able to actually circle the area I want sold comps for, so my ARV cant be THAT far off. So this leaves me with the rehab number I was figuring. I was going with $35-$40 per square foot. on one shell which was right at 2000 sqft, the rehab number I got was around $75,000.

I haven't walked through any properties as of yet. I was weeding through the list of properties to see what would be worth my time to visit. This weekend I will be looking at 4-6 listings.

Please help!! Im eager to put some offers on the table and get these under contract!!!

[Roberto Lobrace]

Hi Mark, rehab costs are going to vary depending on the type of finishes you are looking for. I don't like to use a price per square foot for rehab, but your number is too low. You can expect to spend about $50 per square foot for decent finishes. I recommend you only use price per square foot to get an approximate rehab cost, and learn what each part of the rehab should cost.

I also highly recommended that you get your comps from a Realtor. You should be getting at least 3 comps to determine the as is value and at least 3 comps for ARV.

I hope this helps!