Importance of Nailing the Rehab Costs!
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.