Hi there Bigger Pockets community,
I am just getting started and trying to learn. Listening to the BP podcast and reading a couple books I feel like there is so much to absorb and a lot of suggested action to take. It's difficult to narrow the focus to what is essential to do at this state. I feel two things stand out: #1) the importance of taking action "Just do a deal" (it should of course be a good one) and #2) learn to analyze deals by doing so every day (or as close to that as possible).
Item #2 seems essential to being able to do #1 without totally bungling it. And I hear the question asked all the time "how many deals are you analyzing?" I've got the BP analysis tools as part of the pro membership, but there's a gaping hole in being able to actually do realistic analysis and that leads to my question:
How can you estimate the rehab costs for analyzing deals? I've watched the webinars and it sounds so easy, but when we get to rehab cost estimate portion, it's always something like "hmm I think this will cost around $12k to rehab." I've got the BP "The Book on Estimating Rehab Costs" and there's a lot in there, but essentially it sounds like I need to use a spreadsheet to detail out a full estimate on the rehab costs. This doesn't fit with the idea of being able to analyze a deal every day. Nor is there usually enough info just from a listing to be able to complete a full rehab estimate.
My first reaction to hitting this roadblock was just to say to myself, "ok I guess the first step is to thoroughly learn how to estimate rehab costs." But honestly, this just seems like more stalling and inability to overcome the inertia and get moving. More things "to do" while I don't actually get anything done.
I can go to rentometer for comparable rents, I can look at the county website for tax information, I can look on zillow and realtor.com (and talk to appraisers) for a good estimate of ARV, but I know that repair costs can eat up years of profitability. And right now I feel like I'm stuck between either throwing darts in the dark OR trying to go in deeper than is really possible before making an offer.
Do you have any advice on this?
Thanks in advance!
Josh
P.S. A little about me/my situation. I am the SF Bay Area and I sold my primary residence with the goal of using that equity for two things: become debt-free (check) and have something with which to start BRRRRing long distance. I've selected a market out of state that appears to be good for the prospect of long term rental ownership, and need to start taking the next steps.
