All Forum Posts by: J Scott

You should always know the maximum you *can* pay, and then decide from there the tradeoff of trying to get the property for less.

If you think there is great risk offering less than $100K and $100K is a number that makes it a worthwhile deal for you, then offer $100K...

I generally look to make at least 15% of the ARV in profit.

My best advice is to be more clear in your communications. 

I've worked with hedge funds in multiple capacities, but I have no idea what you're looking for?

Do you want a hedge fund to invest with you?  Are you looking to buy from a hedge fund?  Are you looking to sell to a hedge fund?  Do you want a job working for a hedge fund?  Do you want to interview a hedge fund for a school project?  

If this is in California, you plan to use super high end fixtures, and hire artisan contractors, with all permits and all issues accounted for, you're probably looking at about $400 per square foot.

If this is in Atlanta, you plan to use the lowest end materials you can buy, hire day laborers, not pull permits and ignore any issues that are not purely cosmetic, you're probably looking at $10 per square foot.

If you're somewhere in between, probably somewhere in between.

Long story short, there's no way anybody will be able to tell you how much the renovation like this will cost without knowing specifically where you are, what type of contractors you plan to use, what level of materials you plan to use, and what the specific scope of work is.

But, if you check out the BiggerPockets bookstore, they've got a great book on estimating rehab costs and the methodology that goes into figuring out how much it should cost.

There's no one thing that works in every situation. That's probably the most important thing. Recognizing that every deal will be different and optimizing profit on every deal will require a different business plan and strategy.

Do a search for national electric code (NEC).  That's the starting point that most states of municipality issues for their electrical codes, though they will often add their own changes on top of that.

This might help:

https://www.biggerpockets.com/...