Estimating Rehab Costs
Member since 2020 · 23 posts · 4 votes
Hello frinds.. im a foregin investor, looking for my first one in the Orlando/Tampa areas..
I want the groups wisdom on what will be best way to figur out my rehabe costs, when analyzig a deal.. (befor a contractor is being involed)
Do you have any app/web/softwer you recomend, or any other tip for quick estimation?
Does prices differ dramaticlly between states?
Thank you
Thanks J.. i have read your book, "By the num." and it's been realy usfull..
Question about the rehab book (couldnt understand from the previwe): does it includes kind of check list with prices on items?
The estimating rehab book will not give you exact numbers for each piece of the renovation. Nothing can, simply because every area is going to be different, every contractor is going to be different, pricing changes seasonally, material prices change monthly, there are different levels of contractors and quality, there are different levels of material and quality, etc.
What the estimating book will give you:
* A step-by-step methodology to learning how to walk a property and assess its condition and the repairs that are needed.
* A step-by-step methodology to creating a scope of work for the renovation.
* A step-by-step methodology for how to inspect various systems of the property to determine what is working and what is not.
* A set of templates for the line items that will end up on your scope of work.
* A ballpark range of pricing for each of those line items. Though keep in mind that this edition of the book was written just before COVID, and much of those price ranges are on the low end these days thanks to inflation and supply side constraints.
* Tips for getting each of the line items on the scope of work priced out, both from a labor and materials perspective.
Basically, the book will teach you how to estimate a rehab. But it won't do the work for you. Unfortunately, nothing can.
Thank you all.. i appreciate your advise, and ofcourse nothing can replace a profesional contractor estimation. and yet, i need a tool that can give me a range of this costs, especialy when need to move fast with my offers
It does not exist, not with any accuracy that is.
You need a GC Partner, that is very literally the only way. With time you can build you own personal estimation tool based of experienced costs.
Thing is there is not a singular universal price per item/scope. It's like saying how much to get an automobile painted, well what kind of automobile, what finish level, what prep work, it will vary case by case and shop by shop.
If you looking for a way to do things hands off from a million miles away virtually, it's via GC partnership, that's it. OR get ready to accept a lot of variance from projected and realized, it will simply never be accurate.
Thank you @James Hamling... the more comments i get i realize this will be the best option.. just hoped there is some other way for rough estimation..
Thank you all.. i appreciate your advise, and ofcourse nothing can replace a profesional contractor estimation. and yet, i need a tool that can give me a range of this costs, especialy when need to move fast with my offers
It does not exist, not with any accuracy that is.
You need a GC Partner, that is very literally the only way. With time you can build you own personal estimation tool based of experienced costs.
Thing is there is not a singular universal price per item/scope. It's like saying how much to get an automobile painted, well what kind of automobile, what finish level, what prep work, it will vary case by case and shop by shop.
If you looking for a way to do things hands off from a million miles away virtually, it's via GC partnership, that's it. OR get ready to accept a lot of variance from projected and realized, it will simply never be accurate.
Thank you @James Hamling... the more comments i get i realize this will be the best option.. just hoped there is some other way for rough estimation..
The only other way is to approach it as a GC would for there internal operations.
This would be via getting something like RSMeans Database. You could check into Clear Estimates, which is a software for estimating that has ability to upload specific estimation databases per market locations.
ALTHOUGH pay special attention to the information on it, because even then with a database service and estimation program it will speak of refining the calculus to what's specific to the user. So even the "official" material/labor database has significant variables to it.
And then there is ability to build accurate estimates. I think once you watch a few videos on it that fact will hit home, I am betting the thought will be "holly hell this is a lot more complicated then I thought". Yeah, it is.
Now if you want to really dig into getting accurate estimation, xactimate would be your direction, this is what insurance industry uses. Forewarning, it's probably going to feel like one needs a 4yr degree to navigate it's operation.
These 2 items are the prevailing "easy" way of doing it. And there is nothing easy about it, you need to have commanding knowledge of home construction to be able to utilize either software.
Sara,
Word of warning on FL. The Insurance market in FL is extreemely difficult at this time. Many carriers have exited the state. You may want to contact an agent in FL and get some estimates on the costs of the coverage both for the Rehab and also for the Dwelling/Fire policy you will need once you rent it out.
Ask the agent about restrictions on age of roof. I think I have read that companies were refusing to write coverage for dwellings with roofs over a certain number of years old (10?)