What is the average rehab budget do most investors set for themself for a project. In otherwords, what is the cut off before a rehab becomes too expensive to take on as a deal?
It all depends on the potential profit and estimated schedule. I’ve put as little as $15K and as much as $50K+ into rehabs. I’d gladly put $100K into a property if I thought I could get $100K profit out of it.
Agree w/ jmd_forest. This goes into knowing both what your housing market values are for the size/type of house you’re looking at as well as being able to estimate repair costs. There is no magical percentage number for rehab costs as part of a total project because every project is different. Watch some of those “flip this house” shows that were so popular a few years ago. Everyone was speculating and lots of those people on TV got into too big of projects compared to what the house was worth because they thought everything was a good investment and everyone makes money in Real Estate.