This is an investment flip I am considering. The home is basically a shell with outer wall damage. It needs walls, toilets, tubs, flooring, etc. This home is a 3bed/2bath in a upper-lower income area where there are a lot of rentals.
Any ideas on how much to rehab prop?
Going to need more information and pictures to even venture a guess. Looking at the photo, it does not even appear to have a roof. Basically looks like new construction.
Also, the best resource would be to contact a local contractor for pricing. They could more accurately give you a ball park as every investor has their own idea of what a rehab should cost.
Is that it? Doesn't look like it has a roof? Sounds like you may be in over your head...If you want a quote we can't give that to you...Looks to me like you are building anew house...Get a contractor to give you a quote.
Thanks Brian and Kyle for your feed back. There is no roof. And I have begun to submit requests to local contractors. You 2 are about right; this is basically a new construction venture. I super appreciate your advise and comments. They give me more fuel for my bid on the prop. (I should be able to get it for lower price.)
It all depends on high end vs low end quality and location. Value is location based. I wouldn't be surprised if its over $70 sf. It could be closer to $90 sf or more. The smaller the sq ft the higher the cost per sq ft. Get quotes from contractors. Look at the neighboring house values and divide it by the sq ft to give you an target. Don't forget there will be site work as well, landscape, paving, etc.
Example: $200,000 / 2700 sf = $74 per sq ft. or $400,000 / 2700 sf = $143 per sq ft.
I wouldn't offer anything above the county tax value of the land. It may even require you to go backwards (as in demolition) to get value out of this from the picture at hand. That one wall looks braced; I wouldn't put much stock into any of the structure being of sound construction.
If it's an REO or someone looking to get out of it, offer land cost minus demo costs. Then, look for a contractor to offer an estimate on a new con bid. You may save a bit if some permits had been pulled and some intangibles are is in place. That said, it's going to be costly venture eyeballing it.
That's a project. Good luck.
I'm going to jump in here instead of creating my own post....do you guys take a construction expert with you to every home you may make an offer on? I'm just wondering how timly that could be, and depending on how spread out the Homes could be one could easily wear a contractor out easily if looking ends up exceeding building. What's your Strategy on how to get accurate pricing on construction?
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