When evaluating distressed properties without having access to the interior, what is the average range of rehab costs per square foot? What are typical best and worst case scenarios for Atlanta rehabs?
If I remember correctly from J Scott's book -- in which he was rehabbing in the Marietta area around 2012/2013 -- he used a rough estimate of about $25/sqft for minor rehab (floors, paint, cosmetic stuff), $35 for a minor + some capital improvements, and $45 for a total gut job.
For rent ready stuff its closer to 10%. Full gut with roof and major systems is 45-55/ft. All being ROUGH estimates. Only used to get control of a prop, then get more in detail. I agree with the #'s above as well.
Costs may be 15 to 20% higher than when Jay was rehabbing here. Back then, labor was much cheaper than today.
Are you guys referring sole to Flips or Buy & Holds? Seems like a Buy & Hold investor could get things done way cheaper than $45-55 soft, or am I lost?
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