Estimating Rehab Cost in Multi-Fam Value Add deal

[Felipe Soto]

Hello everyone,

I heard that when estimating costs for rehabbing a Multi-Family Purchase, some
investors will estimate rehab costs as being somewhere from $10 to $25 per square foot. A 1200 sf unit would range from about $12,000 to $30,000 under this method. If you need major items replaced you may need to estimate them separately.

Obviously, bringing a GC would be best, but what do you think about this method? And/Or as an experienced MF investor, what do you recommend when estimating a value add deal without the presence of a GC?

Thank you,

Felipe