Buying a property is the easy part.Seasoned investors sometimes make errors on renovation cost estimates, myself included.

Hello,
I’m seeking a referrals for full gut rehab contractors in Dallas. Specifically for Single Family Homes in the Bishop Arts District.
I am looking to purchase a house close to my current STR to and need to get ...

I understand that a typical rental analysis takes the monthly rental amount, sets aside 5% for vacancies, estimates 50% for expenses, and then makes sure the remaining 45% pays debt service and leaves a profit.But I've noticed that mortgage calculators often include insurance and tax payments in their monthly mortgage payment estimates.

I've ordered the BRRRR book from BiggerPockets, and I've listened to BP Episode 327 where they do a BRRRR deep dive where David softly advised against this (@ 1:19:48 in BP 327) because it wasn't efficient, but I wanna learn more and see if it would be a good-enough way to get into real estate for someone in my position.I'm estimating that by the time I'm ready to buy--November 2022--I'll have $70,000 (not including my emergency fund) in cash for everything: cosmetic-only renovations, initial down payment, closing costs, etc.

The property is in distress due to the living there and we have thousands of dollars from mold estimate just to remedy which doesnt include the thousands it will take to refix the things they throw out and cut.

Any and everything - I am very open to learning what rules and estimates you like to adhere to - of course everything is subjective and is deal by deal” but would love to hear it.

@Allen McGlashing my plan for the units is:New Construction Cost = $600KFurniture and interiors = $35KTotal outlay = $635K and will finance with a lender @ ~30% DPHave it on STR - use local PM company - estimating around 35% feeI expect NOI = ~$25K - see sheet belowMy question is - market wise does this make sense - in the current market do we have any better opportunity?

The property info is correct, however the loan data is estimated so if my estimates look off please let me know.

It is used to estimate the investor's potential return on their investment in the real estate market."

On my recent purchase they lent 75% of the rehab costs and did an ARV appraisal to estimate value after it was completed.