Is this too much for a rehab budget?

7 Replies

Hey BP just wondering about something. I'm putting together a few reports for the banks I'm going to be going to for lending and my contractor put together a few quotes for me to redo the bathrooms and kitchens on a 4 plex I'm looking at. In total the rehab will be around 80k so I'm wondering is that way too high?? or am I just overthinking this (which is something i tend to do for big decisions).

Originally posted by @Gerardo Lewis :

Hey BP just wondering about something. I'm putting together a few reports for the banks I'm going to be going to for lending and my contractor put together a few quotes for me to redo the bathrooms and kitchens on a 4 plex I'm looking at. In total the rehab will be around 80k so I'm wondering is that way too high?? or am I just overthinking this (which is something i tend to do for big decisions).

 That much, in Gainesville???? 

I don't believe it at first sight either. Best thing you can do is to find another contractor and ask for a quote. Even if you have to pay 100-200 for it. 

Then you can have a more accurate idea.

Originally posted by @Gerardo Lewis :

Hey BP just wondering about something. I'm putting together a few reports for the banks I'm going to be going to for lending and my contractor put together a few quotes for me to redo the bathrooms and kitchens on a 4 plex I'm looking at. In total the rehab will be around 80k so I'm wondering is that way too high?? or am I just overthinking this (which is something i tend to do for big decisions).

 Hi again G-

You can get an idea for materials if you are using standard off the shelf stuff from Lowe’s or Home Depot. Likely it’s labor included with their quote but you can see that on what was given to you.

For a 4-plex kitchen and bath for its complete overhaul I would think that's a close number, baths really don't cost that much (I found this out with my own rehab). I'm also going by a standard to less than kitchen size that plex's have relative to a SFR. If there is no outlandish electrical or plumbing and only plumbing hook ups for bath then no extreme cost there.

Are you buying appliances?

That’s a pretty broad question.  Can you give a little background?  The quads that I have seen all have pretty small kitchen and baths so it’s hard to give a ballpark. Rough size of kitchen, 1 bathroom in each unit or 2?  Box store cabinets or special order?  Everything comes in to play.  I’m assuming it’s a complete tear out with a price like that.

@Gerardo Lewis You should have a minimum of 3 quotes and have them all be compared using the same finishes. If you got three quotes and they were all in the same range you'll know you're all good on the price and the bank will know that you've done you homework. Additionally having multiple quotes provides you with a backup plan, suppose while you're waiting on funding approval your contractor takes another job and he can't get to your job for another 4-6 weeks, you then get more quotes and find out your job really cost 110K and not the 80K your one quote stated, with three quotes if one guys busy you know many others should come in around the same price and you don't have to choose between paying more for a new contractor or waiting for 4-6 weeks to get the contractor that quoted you too low.

In regards to your question, is the quote too high for what level of rehab? Full Whirlpool stainless suite, Bosch, LG, deep discount Mikes appliances in lime green? Give us more details for what you're getting for the 80K and we can give you a better response.

@Gerardo Lewis Definitely get more quotes. Until you have an established contractor you've worked with and trust, you should be getting at least two quotes, three would be better. 

But the quote does not seem too high to me. Tough to answer because we don't know the current shape of the property and it's mechanicals (if it's old and needs new plumbing, and/or electric that's gonna cost more than a facelift). We also don't know the size of the rooms or how many bathrooms each unit has. With the information you provided, $80k seems okay to me.

Hey everyone I'm always so bad at getting back quickly to reply but i appreciate everyone's advice the gist of what I'm hearing is to get more quotes so that is what I'll be doing then to get a better idea. I technically have a contractor we've worked together on projects before but I was just wondering to be honest I'm probably overthinking the hell out of this but I'd rather be safe than sorry.