What’s your average rehab cost per square foot lately?

Question

Trying to get an updated feel for rehab costs in different areas.

What are you all seeing lately? $/sq ft for cosmetic vs heavy rehab?

Would love to hear from experienced flippers in different markets.

Eric Fernwood · Answer

Hello Brandon,

The cost per square foot for property renovation is highly variable. In our case, renovation costs are averaging between $12 and $17 per square foot. Our business is in Las Vegas, which is in the Mojave Desert, which determined the construction materials. Below is a typical property. All materials are very durable and last for many years.

Renovation cost is a function of the following:

• Property selection: We only consider properties needing low-risk cosmetic renovations—appliances, paint, flooring, countertops, and window treatments.
• Market competition and tenant preferences: Our finishes match what our target tenants expect and what competing rentals offer. There's no sense in over-improving.
• Volume: We complete 4 to 6 renovations per month, averaging $25,000 each. This enables our renovation vendors to provide lower labor costs.
• Standardization: Since 2017, we've standardized all major renovation materials—flooring, paint, fixtures—across all renovations. This enables our vendors to purchase in bulk from manufacturers, cutting costs and ensuring materials are always available for immediate project starts.

What’s your average rehab cost per square foot lately?

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