All Forum Posts by: Charles R Barattini

@Will Barnard

J Scott’s The Book on Flipping Houses defines 4 levels of renovation:

1. Cosmetic (paint, carpet, appliances, lights/fans, sinks, door hardware, outlets/switches)
2. Advanced Cosmetic (cabinets, countertops, doors, windows, roof, siding/gutters/trim)
3. Mechanicals (HVAC, re-piping, re-wiring)
4. Advanced (foundation, mold, structural, additions)

Assuming all other aspects of the deal are the same, what is your minimum acceptable gross profit margin for flips of each level of renovation?

practice. practice. practice. @Carlos Zapata recommended a good intro book and this will most likely be sufficient. If you want to get more advanced, construction estimators use Uniformat (http://icee.usm.edu/dkemp/download/ACT380/Presentations/Supporting%20Docs-Samples/PDPG%20Docs/UniFormat2010.pdf) and Masterformat (https://www.edmca.com/media/35207/masterformat-2016.pdf) to break down budgets. You can use publications by RSMeans for help plugging in costs (https://www.rsmeans.com/products/books/2018-cost-data-books.aspx). Build relationships with vendors since they are the only ones who can provide real time costs.

Market research is your best bet to make this decision. I was reading Zillow's 2017 Consumer Housing Trends Report today (https://www.zillow.com/report/2017/) and it had "Needs and Wants" statistics for renters and buyers. 67% of renters required + desired off street parking/garage and 40% of buyers required ample parking. This report is based on national statistics so I like  @Shawn Ward's recommendation to confirm local market needs and wants.

@Antoine Martel please give more details why NPV isn't useful to you

Good day BiggerPockets!

I'm ready to go to work on my real estate investment portfolio.

I'm experienced in commercial construction management and it's time to put this experience to work in real estate investing.

Cheers to a great 2018!

#LetsMakeTheMagicHappen #RapidGrowthForLife