Estimating Repair Costs - Posted by Baltimore BirdDog

Posted by Rey AR on January 22, 1999 at 20:00:48:

I’ve done a few rehab homes. I had personally remodeled a home. I did it all, new kitchen,new ceramic through out 2/3 of the house changed every plumbing fixture every switch and outlet and fixture and interior and exterior doors and gutted a bathroom and installed new sheetrock tiled the surround
etc… After all that I thaught i had covered everything the couple I was selling to had a home inspection done. that inspection ended costing me another $1200. He found problems I never knew existed:A/C soffit rotting even after I repaired them a hair line crack in a bedroom. The couple invested $200 and got over $1000.00 worth of repairs. With the experience I had in remodeling, I still overlooked some things. I still walked out w/ a $15000.00 check at closing. the moral of the story is if you are not experienced with home improvements I highely recommend seeking professional help

Estimating Repair Costs - Posted by Baltimore BirdDog

Posted by Baltimore BirdDog on January 22, 1999 at 17:05:45:

Obviously, one of the critical elements in determining an offering price is calculating FMV. I understand that Realtor comps or researching FSBO’s can give FMV for a house that’s in near perfect condition, but?

#1) How do I inspect a house so that I have a good enough idea of the cost of repairs? Are there certain major areas or items to inspect?

#2) Do I need a contractor or an inspector to do a more thorough inspection or is my first walk-through inspection plus, say, a 5% contingency discount off the price good enough?

#3) What are the advantages/disadvantages of having a contractor vs. an inspector look at the property?

#4) How do I find a good contractor and convince him to go with me to look at properties? What is his/her incentive to look at a potential “flip” knowing that they probably won’t get the work?

Thanks for any advice you may have.

-Jeremy (Baltimore, MD)

Thanks George! - Posted by Baltimore BirdDog

Posted by Baltimore BirdDog on January 26, 1999 at 13:34:19:

Thanks for the advice on using a handyman or a retired contractor. Percent of the profits as incentive is a good idea.

-Jeremy (Baltimore, MD)

Thanks Rey! - Posted by Baltimore BirdDog

Posted by Baltimore BirdDog on January 26, 1999 at 13:30:50:

Thanks for taking the time to relay your rehab story. Sounds like it got to be a real pain in the A$$ sometimes! Glad you persisted and got the golden ring. I’ll definitely seek professional help.

-Jeremy (Baltimore, MD)

Re: Estimating Repair Costs - Posted by George

Posted by George on January 22, 1999 at 23:31:25:

It depends on your experience with repairs. If you have never replaced a roof or furnace, then I recommend using a “handyman” who can do the work at about 50% of contractor price. Or hire a retired contractor for $50 an inspection plus a % of the procedes if you flip it. This way, he’s not interested in doing the actual work, and he’s got some incentive to help you maximize your profits (and HIS share) and keep doing these deals with you.