Estimating Rehab Costs by J Scott: 2023

[Jewel B.]

Happy Tuesday everyone,

I've just started reading "Estimating Rehab Costs" by J Scott (and will then also read his book on flipping) and I see it's a revised edition from 2019, which is obviously pre-Covid and therefore associated supply chain issues and increased costs and general inflation.

Does anyone know if there will be a third edition coming out in 2023? Or if you're able to give an estimate % increase in labor and material costs (particularly if you have actually read the book and have been active in flipping or rehabbing since then), that would also be much appreciated. Of course, if you've simply been active in flipping/rehabbing even without reading the book and can note your % increase in costs over the past few years, I would also appreciate that as well.

Thanks!

[Jaron Walling]

@Jewel B. Going beyond the books is the best way to learn rehab budgets. Real world experience is everything. I read J. Scott's first book and it's valuable. I've read other books as well but without working with contractors to get quotes for projects it's hard to put the pieces together. 

Hands down the most expensive work is electrical. It's dangerous and wire is expensive. Can't really go cheap on this work. The second most expensive is roofing, plumbing, or painting (depending on details). We have remodeled a few SFH in the last four years and our budget has grown from $17k to about $23-25k for a rehab (including new roof). So that's a 23% increase on comparable size properties. That's just my experience with starter/rental properties.