The rate that you pay to process a credit card transaction is a combination of base costs and markups called merchant discount. Think of merchant discount as the retail price of credit card processing, base costs as raw material expenses and the markup as production costs.
I divided the rehab cost by the square footage and came up with a cost per square foot for each home. The rehab ranged from 7-15 dollars per sqft for an average of $12 per sqft. For example a 1000 sqft home should cost around $12,000 on average to do a cosmetic rehab.
Once you have a general feel for how much things cost (i.e., will this be a $5K rehab or a $50K rehab), youâll be able to start making offers without the pre-purchase estimate, as youâll have a good enough idea of the costs (to within $5K or so) that you should be able to generate a conservative offer price.