Estimating Rehab Costs

     On thing that is important to know about getting into rehabbing a home is knowing what the construction costs are. It can be difficult to know the exact costs because things can be revealed during the whole rehab process but, it is best to get an estimate before going all into a property. Here is an article I read about rehabbing:

http://www.creonline.com/rehabbing-houses-part-three.html

In order to know how much you should pay for the home before you purchase it is based on 3 steps:

1. Calculate the value of homes in that area.
2. Calculate the repair costs
3. Calculate the equity you want in the property

Ex: 100,000 (market value)
    -   20,000 (repairs)
    -   20,000 (80% equity)
        60,000 (purchase price)

Til next time,

JC