Question from Jim’s Call


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  • Jackie, you mentioned that you could show people how to estimate repairs quickly. I have a very difficult time figuring repair prices. Would you let me know how you do them?

    Thx

    Jean

    I dont have a magic forumula. I did it so many times last year, that it takes just a few minutes and I can ballpark it close enough. I try to be conservative, it is ultimately up to the investor with their decisions on everything from materials selections to labor.

    Anonymous

    Jean,

    I use a little form I created to list all the repairs that need to be done:

    roof
    outside painting
    replace kitchen
    replace bathroom
    windows
    carpet
    etc…

    I add up all the items – let’s say there are 12 things. Then I multiply that by the square feet of the property. Let’s say it is 1200 sf – that equals $14,400 in repair costs

    ta da — quick and easy

    Now some things will cost more on the list and some things will cost less but it all balances out.

    if the house is especially nasty, I will add $2000 for misc.

    If it is a home in a more expensive neighborhood, I will double the repair costs because I will need to use a better quality of materials

    try it

    Awesome!! I love it. That has always been the hardest part of RE for me

    Thx
    Jean

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