I realize this is by no means the best way to estimate construction costs but I was curious what the avg construction cost is these days in Los Angeles. 

I estimate 5% vacancy.

Estimate $3000 to get it ready.

I am to be given a cash out estimate of $40,000 at closing, with a new mortgage of $2,400/mo.Now I’m due to close on Nov, 1st and looking at the disclosure they sent me today I see that it’s $33,000 cash out..

GOSSSHHHHIssues:• 25k over rehab budget• 3 months over estimated timeline• Someone stole all the flooring• Had to submit an insurance claim• Windows took 6 months to be delivered• Had to evict a tenant• Cash to close on the HUD was higher than expected • Had to extend the hard money (short term) loanReal estate is fun but it’s not easy.

Especially w first few deals, the sweat-equity partner may only contribute 30% of value, so 30-70 is the arrangement, especially if it's a short-term JV...I think we hear the 50-50 talk from established investors who have built a long-term relationship w investor-partners.Yes, we could get into the minutiae of tracking the dollar-value the "worker" brings to the table over time, which I guess is the spirit of the "mini-mortgage" approach: Estimate the value of their sourced-deal if wholesaled; set an hourly wage for office-work/time spent renovating; charge a leasing fee for tenant placement and 10% of rent or whatever each month for PM moving forward... 

@Elijah Lopez talking with agents is probably a good idea but Bigger Pockets also has a rent estimate tool.

So for example, before signing it seems correct to get our own team to walk the subject property (ie, our own fiduciary realtor, inspector and contractor for rehab estimates, etc., and property manager since we'll be holding as rental), check on liens, flood zones, etc.

Hi Jesse,Maybe Co-GP with someone who has successfully Value-added with re-habs on apartments of this size.Because based on this question, I'd say your chance of coming in on budget and on time is very low (especially with Covid shortages).Using an architect to help with color, landscaping, office design and decor, etc...might be worth it.This is a big project and in addition to handling the actual rehabs, you have to be concerned with your renters inconveniences, 7am chainsaws, water and electric shut offs, downed laundry faculties, pounding and buzz saws whirring all day long.You have to have a plan to appease their anger over this--or they will move out (when they would have stayed), increasing your turnover and decreasing your estimated cash flow.Having a management company that is familiar with re-habs might also be a help--some may also handle the re-hab for you for a (% fee).Good Luck!

I won't know the Dec utility expenses at the time of the reimbursement, but I plan to estimate it based on Nov's utility expenses.