Can I please have some feedback regarding what the current average cost is per sf for rehabing in the Kansas City, MO area? No structural repairs. Just int/ext paint, refinish hardwood floors, kitchen upgrades w/ cabinets, countertop and appliances.
Boy, @Steve Kirsch , that'd be a multifaceted answer to what seems to be a simple question... I haven't been involved in as many rehabs as some of the major players here in the KC market but it really depends on the type of rehab you're wanting done and your end goal; among many other things. I'll let someone else here open up the can of worms on this topic LOL but I'm here if you want to talk or send me a PM. I'd be happy to give you some input about some my experience & such. FYI, I used to help run a property management, maintenance & contracting and real estate brokerage & investing companies (4 different entities) altogether for a few years here. Right now I'm simply brokering deals, investing, and assisting with select clients. :)
Without property details on size or quality of finishes nobody can help you.
The kitchen alone could be at least $7-10K with new appliances, lighting, and cabinets installed. Much less if you DIY a few projects and paint existing cabinets.
@Steve Kirsch - My usual answer to this is "how long is a piece of string?" There are so many factors here including who does the work and the finish level. For what you are talking about you should just cost out the rehab and not use a per sf estimate.
Thank you all for your great responses. I will provide more clarity toward the rehab details to get a better picture of what is to be done and by whom. In general I had hoped that there was a "Market Average" rate that could be used for analysis calculations to see if the property is worth diving into and researching before commiting.
@Steve Kirsch My average is around $20-$750/sf.
We've managed literally hundreds of rental renovations over the last several years. About $10M worth to be more accurate.
Given that, I see our renovations of a very typical B class property in a traditional suburban area, with typical paint, flooring, mechanical, and other necessary items to be about $25k-$32k. We tend to lean on the side of durability for the long term, so we dont use the cheapest products to do these with. Stainless steel appliances, granite counters, SW paint, very durable, thick LVT, etc.
Just to help you with that ballpark number. And that would have been on a 1250-1400sq ft house.
@Manolo D. Thank you for your repsone. Much appreciated.
@William Robison Thanks William. This helps. Being that I am looking at doors in the KC area, I have a "ball park" general starting point. I know the rehab cost will be project specific, but for initial forecast calculations, this will do.
Also, are your contractors or handyman in house or do you typically sub the work out and do you use Project Managers to oversee the rehabs? I'm looking to building a team locally so when I have a viable property locked down, I can start the process relatively quickly.
We use a unique approach. I operate as a licensed General Contractor, on top of my brokerage and PM company. We offer project management services, but in a different way. We do not like to get generalists pick out supplies and subcontractors, as we typically do not get the level of our expectations met. With that, we hire our generalist, and then we also hire all of our owns subs. This way, we can insure consistent products for our market. We use volume pricing with all of our contractors and subs, so we can typically save money for our clients through this process. On top of that, we require our generalists and subs to be insured and licensed when needed. This costs more, but results in a better product. On top of their insurance, we also insure the projects to ensure safety. We manage our rehabs with myself as project lead, and a field supervisor that visits each site a few times each week. We provide the majority of supplies so we can remain consistent and know that we are getting the correct product in the property. We also have captured volume pricing by buying the bulk of supplies for the houses. For a small example, we buy premium LVT planks that retail at $2.40/ft and we are priced at $1.99 from volume. At the end of our projects, we are able to provide a consistent product for our property management team and our owner clients. We charge a 12% project management fee for these services. This covers everything from developing the scope, assigning the contractors, checking on progress, following up on questions, and a thorough punch list at completion.
Long answer to a short question, but I hope that helps.