Hello fellow Delaware bp member,
So far from what I have seen it can vary based off of what repairs needed for the townhome. Calculating the ARV should give you a better idea of the cost for your specific property.
It would definitely depend on the home. Some of the townhomes in Wilmington area require entire gut jobs. Others would perhaps only need cosmetic fixes if they’ve been kept up with. You would need to look at the property specifics when you find one to analyze.
Too many variables to figure an average cost.
Originally posted by @Amar Sonar :
Hello All, Would like to know avg.rehab cost of townhome in Wilmington DE ? I am looking start renting portfolio with adding some properties. Please guide to know about rehab cost and rent. Areas are low income with avg. rent 600-900 bucks.
If you're going to rent in areas that average 600-900 a month then you're in some of the roughest worst neighborhoods in Wilmington. I'd do the bare minimum I could and never spend more than $15k rehabbing something or it's not worth it. Anything with structural issues, highly likely in these neighborhoods, than you should just ignore it because you'll basically spend $5000 or more just on those things let alone any cosmetic issues that would need to be addressed.
Just my .02 about investing in Wilmington...but everyone finds their own way and I love when people prove me wrong.
That would really help me. By the way local DE bigpocket group, Any estimates or idea of avg. cost renting over there ?
Do you guys know some contractors who can try to help me out with estimates?
That would be very helpful for me.
@Amar Sonar Every house is different in what is required to bring it up to rent-able standards so giving an average cost of rehab is too varied. Do you already have your funding situated to have a GC come on property visits with you? If so, I can check with a guy I know to see if it's okay if I give you his phone #. Also, check out the book from J. Scott: The Book on Estimating Rehab Costs. I have his other book on property flips, but heard that it's a good read. Well wishes in your REI future!
As @Cassandra Sifford has mentioned, I would reference the two books from J. Scott. I've read both and they are great primers. The best way to understand the average cost is get out there and make mistakes and learn from them. Of course, I'd also suggest working with some fix-and-flippers to get an understanding of the process, also finding a GC that can walk some properties with you.
I would say though to ensure you offer some sort of value to the GC in exchange for their time. Doesn't necessarily need to be something monetary but even the possibility of hiring them for your properties could be value.
After a couple times of doing these, you'll have a better understanding of the process... but there will still be variables (labor, materials, your exit strategy also carries weight as well, whether you're going to fix-and-flip to a retail buyer or rent it out.) For instance, you wouldn't put expensive marble kitchen counters in a rental (unless the market supports doing so.)