Cost Of A Rehab?
Can anyone tell me what costs do you calculate when looking at making an offer on a rehab? Obviously there are repairs, holding cost, acquisition cost, closing costs. What other costs do you include?
Thanks!!
Chris
I also factor in RE commission.
[addsig]
You mention repairs, holding cost, acquisition cost, closing costs which means you're on the right track.
Taxes and insurance.
FUDGE FACTOR!!!!
FUDGE FACTOR is completely related to EXPERIENCE!
Start out with a FF of 100% and work your way down from there. However, if you ever fall below %20 in your FF...you are guilty of REH ( ReHabber Hubris).
just a side note on the insurance. It will be considerably more costly to insure unoccupied property than occupied. So get a price before finalizing your deal. I use foremost.
Dave
Thanks for all the information. I forgot about Taxes and Insurance.
Chris
Property tax and income tax