Let’s break down your Rehab into Vendor Costs. You can read over last week’s blog to get a general idea on The Scope. Remember, that the Scope WILL CHANGE, so don’t beat up your contractor for going Over Budget. Plan for it and keep up on Each Add/Change that comes up. You Will Have the option to say Yeah or Na, on things.
For starters, KISS (keep it simple stupid). Get your trusty spreadsheet out and get with your contractor and list Who all the Vendors will be. Then get your Quotes from all the Vendors and General Contractor and insert those costs into your Rehab Cost Sheet. Note that this sheet below is NOT to be taken as Fact on Costs. I am just putting things into a spreadsheet to help you Start the Conversation with your Contractor and Vendors. Once you have all the quotes, then you add them to Your Spreadsheet so you are up to speed on what The Rehab should cost.
Once you have your Ball Park numbers, you have the Final Say So on whether you continue with the Purchase of this Home (10+ blogs ago……). Is it worth it to sink all this money into this home.? Discuss it with your Realtor® as he/she can advise on this, by again doing a CMA (Comparative Market Analysis). You can also order a formal Appraisal. The future of Real Estate is unpredictable, so you have to go with your gut on that side of the equation.
Next week I will move forward with the Steps on ending Due Diligence…..yep….it has taken a lot to get to the End of Due Diligence.