Some go by the SQ FT to estimate but the age of mechanicals can swing the budget

Getting into the story behind this one..This deal was sourced from a large corporate wholesaler (no names) Originally listed as 179,999 as a "wholetail" deal with an "ARV" of 250,000 I walked the house and estimated it needed little in terms of repairs, though I knew a realistic ARV was between 215-230 However, there were tenants in the house without a lease agreement with the current landlord.

He hired a mold remediation company and looks like there is significant amount of mold and the cost estimate to remediate is coming to 12k. 

LTV estimates are sometimes overly optimistic, so many loans that don't get paid off by the borrower become worth very little.

That being said, I’m having a hard time understanding why your client is looking to estimate the NPV of his triplex.

You’ll want to talk to a CPA to help you estimate what your tax burden would be in both the under and over 2yr scenarios, see if you qualify for a partial exclusion, etc.It’s difficult to blindly say hold it or sell it now if you don’t have a full picture of what your tax burden.

I initially paid out of pocket for most of the interior updates / rehab costs when the family moved in, but now it could use new roof shingles (which we've got estimates on) and some minor updates in the kitchen and garage.

He never contacted the contractor to discuss estimates.

Greetings all,We’ve all read methods on how to analyze a real estate deal, running numbers, estimating rehab costs, incorporating taxes, capital expenses, etc.

Anyone have advice on general rules of thumb or ways to estimate operating cost for a short term rental new construction?