Importance of Nailing the Rehab Costs!

5 Replies

This recent flip I posted about yesterday in San Antonio showed me how really important it is to work with experienced people who nail the rehab costs. Ever had a rehab go 100% over budget? I sure have!

Total rehab: $17,270 (estimated was $18k and change)

The numbers on this deal:

Purchase Price: $72,000 cash

Rehab Costs:

  • Kitchen Granite: $1300
  • HVAC upgrade: $500
  • Electric Fixtures: $800
  • Interior finish: $2300
  • Bathroom: $800
  • New floors: $2800
  • Dumpster: $1000
  • Deck: $3000
  • Microwave oven and elec: $600
  • Rotten wood removal: $895
  • Deck stain: $595
  • New sod: $1795
  • Shutters: $295
  • Concrete stain: $495
  • Mail box: $95

Total rehab: $17,270 (estimated was $18k and change)

Total cost: $89,270

Sold price: $115,000

Profit: ~$25,730 (after soft costs it should come out to around 20k, need to figure those)

DOM: 150

They really nailed the rehab budget and for that I give them credit. They told me they had done several hundred rehabs and flips; I thought maybe it was marketinng BS, but yeah it worked out just about right.

Well done!  Sounds like you found a quality contractor that worked out well for your project!  

@Account Closed Great job. What area of town? Really like the colors. Was it bought by an owner occupant? Did you buy it off-market or mls? Thanks for the info. We are buy and hold investors struggling to find great deals lately in San Antonio. Trying to decide if we need to begin marketing or if it is worth it for just one or two deals a year. Any insight?

That's awesome! Finding the right guys to do the job is the hardest part (imo). You should keep them around no matter what it takes. That's a really great return, as well. Hi, from Austin, TX! Lol. Looks like SA is really a hot market right now.

Originally posted by @Andrew Jordan :

That's awesome! Finding the right guys to do the job is the hardest part (imo). You should keep them around no matter what it takes. That's a really great return, as well. Hi, from Austin, TX! Lol. Looks like SA is really a hot market right now.

 Totally agree.  

To bad the account is closed, was going to ask who was the contractor.

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