BiggerPockets Real Estate Podcast - How to Estimate Renovation Costs (2025 Formula)

Episode #1136 Try REsimpli, The Only All-In-One Real Estate Investor CRM Software That Helps You Manage Data, Marketing, Sales, and Operations: https://resimpli.com/biggerpockets/ Maximize Your Real Estate Investing with a Self-Directed IRA from Equity Trust: https://eqtytrst.co/bp Ask Your Question! https://www.biggerpockets.com/forums?utm_source=owned_media Episode Show Notes: https://lnk.to/biggerpocketsYT Join BiggerPockets for FREE 👇 https://www.biggerpockets.com/signup?utm_source=owned_media Let Us Know What You Thought of the Show! https://www.BiggerPockets.com/Podcastfeedback Grab “The Book on Estimating Rehab Costs”: https://store.biggerpockets.com/products/the-book-on-estimating-rehab-costs?utm_source=owned_media Sign Up for the BiggerPockets Real Estate Newsletter: https://www.biggerpockets.com/email-subscribe?utm_source=youtube&utm_medium=description&utm_campaign=none Property Manager Finder: https://biggerpockets.com/findapm How To Estimate Rehab Costs In Real Estate: https://www.biggerpockets.com/blog/how-to-estimate-rehab-costs?utm_source=youtube&utm_medium=description&utm_campaign=none Connect with Henry: https://www.biggerpockets.com/users/henryw22?utm_source=youtube&utm_medium=description&utm_campaign=none Connect with Dave: https://www.biggerpockets.com/users/davem27?utm_source=youtube&utm_medium=description&utm_campaign=none Your agent just sent you a killer real estate deal with enormous upside, but it needs a bit of work. Here’s exactly how to estimate renovation costs, so you know you’re buying a property with a juicy margin instead of one that will just break even. Whether you’re renovating a rental property, planning to refinance after the rehab with the BRRRR method, or flipping a house for some quick cash, we’ll give you the formula to run your renovation numbers FAST. We’re back with real estate investor questions from the BiggerPockets Forums. First up: how to estimate rehab costs on a distressed property. And, if the renovation costs are high, is the rehab still worth it? Then, once you’ve got your rental portfolio, when should you hire property management? Your agent wants you to sign an exclusivity agreement so you only work with them; here’s when we will (and definitely won’t) do it. Finally, we share a way to access home equity WITHOUT refinancing at a higher rate and killing your cash flow. 0:00 Intro 1:00 How to Estimate Rehab Costs 6:15 When to Hire Property Management 14:49 Sponsor: REsimpli! 15:29 Is This Flip Worth It? 20:33 Agent Exclusivity Agreements 28:28 Refi a Cash-Flowing Rental?