Fayetteville, NC Rehab Costs

General Real Estate Investing
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Fayetteville, NC Rehab Costs

Robert ShortsleevesPro Member
Wholesaler · Fayetteville, NC · Member since 2017 · 121 posts · 145 votes

Hey Team,

I'm a Fayetteville, NC investor and wanted to share the way I analyze rehab costs. When I started buying rentals this was one of the hardest and scariest numbers to put into the BP calculator so I figured I'd share and hopefully help some folks that are stuck.

If any more experienced inventors have some feedback that would help too. 

1. Lipstick (paint and floors) --- sqft x 5-10 = rehab cost

2. Light (Paint, floors, appliances, fixtures, ect.) --- sqft x 15 = rehab cost

3. One Cap Ex + 2. (Roof or HVAC) --- sqft x 20 = rehab cost

4. Two Cap Ex + 2. (Roof AND HVAC) --- sqft x 25 = rehab cost

5. Full Gut --- sqft x 30-35 = rehab cost

Example: 3/2 rental with 1150 sqft that needs a new roof, HVAC and all the goodies inside (Number 4). Not a gut job but you'd want to update the kitchen and bathroom cabinets with some hardware and paint. You may need to get a new countertop in the kitchen, some decent landscaping and minor exterior updates/repairs. Of course, you'd need to put down some LVP in the common areas and probably carpet in the bedrooms.

1150 x 25 = $28,750

If you have the right team you can defiantly get this sort of rehab done cheaper but you'd be safe with this number.

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Most Popular Reply

Malinda Wheeler Aparicio
New to Real Estate · Fayetteville, NC · Member since 2020 · 2 posts · 3 votes
5y

@Robert Shortsleeves I really appreciate you writing down your numbers and putting out there. It will help me buy properties with realistic numbers in the area.

3Reply
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  • Tucker Cummings
    Investor · Raleigh, NC · Member since 2019 · 433 posts · 743 votes
    5y

    this is awesome, definitely bookmarking this and stealing it from you

    2Reply
  • Robert ShortsleevesPro Member
    OP
    Wholesaler · Fayetteville, NC · Member since 2017 · 121 posts · 145 votes
    5y

    @Tucker Cummings you can have it brother. :)

    0Reply
  • Ray HurteauPro Member
    Developer · Boston, MA · Member since 2013 · 128 posts · 66 votes
    5y

    Wow! In Boston, a full gut on a triple decker will run $150/SF minimum.  And that's for a rental building.

    Right now, we have an 8 unit property we're "refreshing" (somewhere between 2 and 3) and it's probably going to cost us $60-65/SF.

    I've often wondered if anyone has seen this kind of cost delta and flown in crews to try to arbitrage their labor costs.

    1Reply
  • Malinda Wheeler Aparicio
    New to Real Estate · Fayetteville, NC · Member since 2020 · 2 posts · 3 votes
    5y

    @Robert Shortsleeves I really appreciate you writing down your numbers and putting out there. It will help me buy properties with realistic numbers in the area.

    3Reply
  • Robert ShortsleevesPro Member
    OP
    Wholesaler · Fayetteville, NC · Member since 2017 · 121 posts · 145 votes
    5y

    @Ray Hurteau sounds like you should be looking in a different market. Lol

    I’m pretty lucky to be living in one of the best rental markets. We have minimal appreciation as best but we have cash flow for days. Great place to learn. 

    3Reply
  • Robert ShortsleevesPro Member
    OP
    Wholesaler · Fayetteville, NC · Member since 2017 · 121 posts · 145 votes
    5y

    @Malinda Wheeler Aparicio glad I could help. Always willing to connect with like minded folks if you ever wanted to talk shop.

    1Reply
  • Bernard S.Pro Member
    Investor · Raleigh, NC · Member since 2017 · 12 posts · 5 votes
    5y

    Thanks for sharing. I'm a triangle investor and was looking to branch out to that area.  Would love to network and open to any advice.  

    0Reply
  • Robert ShortsleevesPro Member
    OP
    Wholesaler · Fayetteville, NC · Member since 2017 · 121 posts · 145 votes
    5y

    @Bernard S. Yeah bro. Feel free to reach out whenever.

    0Reply
  • Brady Potts
    Developer · Missoula, MT · Member since 2015 · 60 posts · 28 votes
    5y

    @Robert Shortsleeves Thanks for sharing. Looks like a great rule of thumb. I'm actually on my way home from Fayetteville right now. I met with some agents, PM's and contractors preparing for a BRRR. I walked through a couple of rehabs with a local contractor and it seems like those number matched right up with what he was doing that type of work for.

    2Reply
  • Frank Hinck
    Rental Property Investor · Minneapolis, MN · Member since 2020 · 540 posts · 285 votes
    5y

    @Ray Hurteau

    So out of town crews or “trunk slammers” aka Bringing in guys is not a great idea because they’re usually the worst of the worst who can’t keep a job in a 9-5 Construction company, guys with substance abuse problems, running from child support. The company can steal your money, move on and not complete Punchlist. They’ll want a bunch of money upfront, want you to pay for their weekly hotels and its just not a good idea honestly. Pay a bit more to use a local crew with local references.

    0Reply
  • Ray HurteauPro Member
    Developer · Boston, MA · Member since 2013 · 128 posts · 66 votes
    5y

    @Frank Hinck Lol, yeah we'd never do it but I've always joked about it. Plus, we'd never let the payment schedule get ahead and would use an escrow agent if they had payment concerns.

    I am curious if anyone here has ever tried the approach.

    They most we've done was to use labor outside the city but still in MA and had to fire them after realizing they were more talk than walk.

    0Reply
  • Robert ShortsleevesPro Member
    OP
    Wholesaler · Fayetteville, NC · Member since 2017 · 121 posts · 145 votes
    4y
    Quote from @Robert Shortsleeves:

    Hey Team,

    I'm a Fayetteville, NC investor and wanted to share the way I analyze rehab costs. When I started buying rentals this was one of the hardest and scariest numbers to put into the BP calculator so I figured I'd share and hopefully help some folks that are stuck.

    If any more experienced inventors have some feedback that would help too. 

    1. Lipstick (paint and floors) --- sqft x 5-10 = rehab cost

    2. Light (Paint, floors, appliances, fixtures, ect.) --- sqft x 15 = rehab cost

    3. One Cap Ex + 2. (Roof or HVAC) --- sqft x 20 = rehab cost

    4. Two Cap Ex + 2. (Roof AND HVAC) --- sqft x 25 = rehab cost

    5. Full Gut --- sqft x 30-35 = rehab cost

    Example: 3/2 rental with 1150 sqft that needs a new roof, HVAC and all the goodies inside (Number 4). Not a gut job but you'd want to update the kitchen and bathroom cabinets with some hardware and paint. You may need to get a new countertop in the kitchen, some decent landscaping and minor exterior updates/repairs. Of course, you'd need to put down some LVP in the common areas and probably carpet in the bedrooms.

    1150 x 25 = $28,750

    If you have the right team you can defiantly get this sort of rehab done cheaper but you'd be safe with this number.


     Now that the world is a different place is this still accurate?

    0Reply
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