I am just starting out in analyzing and trying to get a lay of the land in REI. I am interested in the BRRRR method, but I do not have much of an idea on Rehab costs. I am not planning on buying anything yet, so I just want to get examples of what I could expect. Obviously, some of the capital expenses like roofs, furnaces, foundation, etc. can sway things one way or the other in a large way, but how about an entire remodel for a kitchen that has bad cabinets?
Here is a home that I found that I feel could be a good rehab project, but I would have no idea how much it could cost. What do you guys think?
That link doesn't work, can you repost it?
Sorry about that. I linked it down below. I would really appreciate any advice you can give!
@Josh Cuthbertson I am no contractor nor rehab expert, but for this property a rental, I could see around $10-$15/sq ft as a very, very general estimate. 9 pictures isn't a lot to work with, but it looks like every surface needs to be re-done. As long is it remains cosmetic and doesn't get into systems replacement, it shouldn't be overly fancy or ridiculously expensive. Laminate floors and counters, used appliances, prefab cabinets, fiberglass shower/tub surround, generic faucets, etc. Maybe around 15k-25k. Hard to really say without knowing every issue with the home.
I would suggest you read J Scott's book on estimating rehab costs. Great, informative read for those unsure of how to put a price on fixing a property.
Thank you for the input, Bob! I have heard of that book a few times. I am going to put it on my Amazon list for sure!
@Brett Quelch I just read it like 2 weeks ago and will read it again very soon. Super helpful to get you started.
Brett, one option is get the property in escrow then bring in a general contractor and building inspector to give you an exact quote. If its within your expectations close escrow. If not, just cancel within your contingency period and you're done.
That would tell you exactly what you need.
If it's a gut the $30k just for HVAC, plumbing and electrical. 2 story home $15-18k for hwf 5k for new bathroom 7k for new kitchen...80-110k for a 2 story home.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing