I normally estimate an additional $5,000 to close.Hopefully this information helps those who are wondering about costs and deal analysis just trying to get started.

With a purchase price of $740,000 and construction budget of about $1.3 million, a future appraisal estimates its value at $3.75 million.

I did a rough calculation that converting the garage into a 460sq/f studio ADU can potentially make the house profitable as a rental, $1800/month estimate.

Quote from @Aaron Wolman: I would call the companies (gas/water/electric) to get estimates, or an estimator out there.

Still no estimate for completion yet.

However, they approach financial health from different angles.The 50% Rule is a quick estimate that suggests operating expenses (excluding mortgage principal and interest) will roughly equal 50% of the property's gross income.The DSCR is a more precise calculation (Net Operating Income / Total Debt Service) that determines if a property generates enough income to cover its debt obligations.Deal example:- Class C middle class neighborhood- 4bd / 2ba single family house- ARV: 190k- Purchase: 105k- Rehab: 35k- Market rent: $1,400-1,525- Section 8: $1,475- Property manager: 10%- Taxes: 125 month- Insurance $1250 yr- HOA: $55 month- purchased and rehabbed with all cash.

What is the estimate for getting it rent ready?

Estimate $30k to dig if you do not need to underpin the footings

Trying to get a # from him about estimated remaining cost but got nothing.   

Your ability to accurately estimate costs and efficiently manage renovations makes you an extremely valuable partner in any deal.