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By Mike Jacka - Monday, April 20, 2009

Most newbie investors are scared of making offers because they are not sure of the repair costs. This is completely understandable if you did not come from a construction background. I would venture to say that if most newbie investors were comfortable with repair estimates, then they would be way more comfortable making offers.

There is a way to quickly estimate repairs if you break the repair cost down into major components vs. miscellaneous items. Here is a list of what I consider Major Components:

  • Roof
  • Windows & Doors
  • Paint Exterior
  • Paint Interior
  • Carpet / Flooring
  • Kitchen
  • Baths
  • Electrical
  • Central Heat / AC
  • Plumbing
  • Foundation / Basement
  • Garages
  • Steps / Decks
  • Dumpsters / Cleanout

Estimating Repairs for Rehabs and Wholesaling

Everything else is considered a Miscellaneous Item. If you know the total cost of all the Major Components, then I take 25% of that number to determine the Miscellaneous Items and add the two together. This will give you a general ball park number so that you are able to make an offer. However, never close on a property until you have an experienced contractor give you a bid or double check your numbers.



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David Miller4/25/2009

info1@mnhservices.comGreat video, Mike... this was very helpful. Great tips on how to speed up the estimate for rehabs and rentals! Thanks.



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