Time & Fixer-Uppers - Posted by Rich

Posted by Rolfe Kurtyka on March 20, 2001 at 19:11:11:

…say what the heck.

Rich, this response is probably not exactly what you wanted to hear, but here goes. In my market, the good deals often go so fast that there really is no time for long-hand analysis. One walk through is typically all I get, and then the seller (usually a wholesaler in my case) is looking for an answer. If I don’t buy someone else will, usually later today or tomorrow. I have to know what I’m up to well enough to quickly conceptualize an estimate, and I have to know my market well enough to estimate the after rehab value. I estimate in $5000 increments, as in the rehab will cost $10,000, or $15,000, $20,000, or $25,000. I know that I can pretty well take care of anything a single family home can throw at me for $40,000, barring any extraordinanry and readily obvious infirmaties, such as structural problems. Partial rehabs are of course less. Try to find someone in your area who knows rehabs, and see if you can pick their brain for knowledge. Or, you could call various subcontractors who are experienced with your type of rehab, and ask how much a typical job costs. For instance, for a substantial rehab, I know a new furnace will cost about $4000. New duct work will cost about $1500. Typical rewiring costs about $4000, and plumbing about $4000. Materials will be around $7000, including drywall, lumber, electrical & plumbing fixtures, cabinets, doors, and hardware. Eight to twelve weeks of labor, a smaller reroof about $5500 and a larger roof around $9,000. Appliances cost roughly $500 each, and so do 35 yd dumpsters. Etc., etc.

Good Luck; Rolfe

Time & Fixer-Uppers - Posted by Rich

Posted by Rich on March 20, 2001 at 14:42:42:

Please give me some suggestions on how to make things go quicker on purchasing fixer-uppers.

Right now, my process is locating the property, looking at it to determine which repairs are necessary, then calling contractors to give me estimates, then trying to find out how much I will spend on repairs, how much I can sell the home for (quickly), and trying to learn about which techniques I can use to purchase the property to earn a good profit, then finally negotiating with the owner.

Is the above method the one that I should use, or is there something quicker?
The one thing that slows me down is calling and arranging times for the contractors to go to the property and give me an estimate.
Is this the way it has to be???

In desperate need of advice,