Repair Estimate - Do these numbers make sense?

Question

Hello everyone.

I'm here in the SF Bay Area and starting on this journey... on the first property I came across, I was able to get a contractor to write me an estimate... the property is in very bad shape, but I was wanting to have an idea if the numbers (below) make sense with Bay Area reality...

Would anyone have an opinion on this?

Thank you very much!

Felipe

PJ M. · Answer

Even acknowledging that this is 2 buildings those prices are crazy to me.  From reading the work order the buildings will be demo'd down to the studs so everything is exposed.  $30k for rough electrical on a 2 bed/1 bath + 1 outbuilding when its all exposed is laughable.    $6720 for installation of the windows with you purchasing makes me think I am in the wrong field.  Like @Frank Geiger I have a similar cost for windows.  Here in Philly I can get double hung vinyl welded windows installed with caping completed for about $300 per window.  I can go lower if I press and negotiate the price with the sub.  This has to be the "I have more work than I need but if you'll pay it I'll do it" price.  Otherwise known as eff you pricing.

Frank Geiger · Answer

@Felipe Lehn de Carvalho this bid is laughable. You could probably bulldoze and build new for that price

Ernesto Hernandez · Answer

That bid is a joke.

$6700 just for window labor.

$6900 for site preparation, NOT to be confused with demo? Wow.

I see you're in Pacifica. I really suggest you network a bit if you haven't.

There's a Meetup that happens every other Thursday I believe in San Mateo. Send me a PM and I'll message you the info.

Shawn Ackerman · Answer

@Felipe Lehn de Carvalho If you are able to pick up a $2M asset for $1M and put in $280K to realize a $2M exit, have at it.  But the purchase price is anywhere north of 65% don't do it.  As far as your contractors numbers, I'd share this with some other local contractors(remove the numbers, and see where they land.  I do this all the time.  Just got a repair estimate from one of my contractors for $148K on a 16 property portfolio.  Sent to another one of my guys and he'll do it at $133K and sent to my third guy and he'll do it for $120K.  Problem with the first two guys is they are subbing most of the work out and putting a "project fee" on top of the numbers.  Maybe the case with your guy.  All the best.  Persist and you will WIN!!!!!

Syed H. · Answer

I’m in Long Island NY, similar labor costs id assume. That is way too expensive.

He’s not even providing the materials on many of the items.

Sam Shueh · Answer

You did not disclose size, style, floor, quality expected.  I did not see architect design, permit cost.

Bryan Devitt · Answer

Those can't be real numbers. Those are insane to me and I am in the Boston area, which is insane compared to most places in the country. You need to get more bids

Felipe Lehn de Carvalho · Answer

Thank you all! Great comments and information!

Dylan Vargas · Answer

@Felipe Lehn de Carvalho Welcome! I would get a few more bids. This is a must and non negotiable on your part. You are asking the contractor to do a lot of work. Depending if the property is in San Francisco or an area of the City that requires special handling of all the above work quoted this can get very expensive very fast. With that said the homes are rather small so I dont get the numbers. One would have to see the house and know the area to get a true idea of cost. Also, you can get bids separate from a general contractor. Get an electricians bid, plumbers bid, drywall bid, painters bid, window replacement bid, roofer etc. This will give you a better cost idea. I would go this route as this will help you in the future with your investments. Good luck and keep us posted.

Jimmy O'Connor · Answer

@Felipe Lehn de Carvalho those rehab numbers make me sick.  I work with investors from NYC which is the closest comparable for expenses to California on the east coast and everyone I know would laugh at this contractor. Thank the lord for Bigger Pockets vetting.  @PJ McLaughlin I am on in total agreement with you on those Philly prices.

Repair Estimate - Do these numbers make sense?

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