I’m new to house flipping but have extensive experience as the owner of a successful property damage restoration company. This gives me access to a large network of skilled contractors, including plumbers, HVAC specialists, electricians, and general contractors.
I’ve identified a promising opportunity with an auction property, but I’m unsure how to accurately estimate rehab costs with only a small window to do so. The challenge is that the property only has a one-hour open house the day before the auction.
Here are the details:
• Opening bid: $100K
• Hard money lender financing: Up to $220K (with my 20% deposit and 100% renovation costs covered)
• Comps in the area: $485K–$510K
• Estimated rehab (based on pictures): $125K
Obviously, this estimate could change significantly once I see the property. My question is: during the one-hour open house, what’s the best approach to determine an accurate rehab budget?
• Should I bring some of my contractors to get their input?
• Can I bring a home inspector, or is that generally not allowed?
• How do I ensure I have enough information to provide a realistic budget to my hard money lender within 24 hours?
Any advice or strategies would be greatly appreciated. Thanks!
