Potential first deal: wholesale

[Ervens Oge]

Hey everyone. I have a potential first wholesale deal and I need help with the some numbers. More specifically figuring out the After repair value and the repair costs. I already took a look at the home and jotted notes today and it needs a lot of interior work in every room and some exterior work. Is there a good price reference sheet I can use to figure out repair costs? 

[Jose Flores]

Hey @Ervens Oge Let's start with estimating repair cost. How do you estimate repairs? One is that when you walk into a house you need to know what the major components to look for are. Second is as you are looking at those components you need to know what the materials would cost at Home Depot and if you were to call a contractor what would they charge for labor. I have generated a list of all the material cost that you would expect to pay at Home Depot. Now that you know what material cost is we can move on to labor. There are two things you need to understand about labor cost. One is that many contractors will include material and labor in their estimates. That is why the material list is important because it allows you to easily subtract the material cost from the estimate to calculate labor cost. Second, is that there are two types of labor prices; retail home owner and investor friendly. Know what to look for; know cost of materials; and know cost of labor. A rehab checklist helps you accomplish this. Inbox me and I’ll send you the one I created.

Second know how much you should offer on the wholesale deal. This is covered extensively on Bigger Pockets. I recommend you search the 70% rule and read those explanations. Also check out the article below. Hope this helps.

70% Rule Article

https://www.biggerpockets.com/renewsblog/2014/02/14/70-rule-bible/