Some real estate properties need construction and rehab work before being ready to rent or sell. This is a huge cost factor in determining if a property will generate cash flow or profits for the owner.
While everyone should know how to prepare a rough cost estimate for real estate work, there are actually few people that feel confident to work the numbers.
Having an idea of what various projects will cost to complete makes you better prepared to take on any deal. Your rehab budget could be the difference between a good deal and one that will lose money.
We have seen too many rehab budgets exceeded because of a lack of understanding of the project requirements.
Take time to understand some general rehab estimates and how they can help you determine your offering price amount or after repair value for the property.
