using the rehab calculator

[Nicholas Ferraro]

I'm playing around with the rehab calculator and I'm wondering if someone can help me understand the numbers, I plan to do most of the work myself. 

It shows the total rehab cost is insanely low. If anyone can offer any assistance it would be much appreciated. 

[Ronald Ty]

Quote from @Nicholas Ferraro:

Quote from @Andy Sabisch:

The rehab estimator on BP seems to have issues with pricing especially when you select NO CONTRACTOR.  Not sure if there is a glitch with the program that is being corrected or if it has been that way as we do not use it.  The program does not appear to give you the flexibility to add / remove specifics for projects or rooms.  After you have done a few renovations, you will have a feel for what a project or entire room will cost and get pretty close in a ballpark when you do a walk-through with a notebook or tablet.  These programs that are intended to estimate rehab costs are often using outdated material and labor costs or are overly restrictive in how the rooms are grouped (value, quality or luxury).  Actually some of the YouTube videos that cover estimating rehabs are more accurate than what the programs try to do.  We tried a spreadsheet (Excel) type tool when we got started and spent too much time trying to fit numbers and not enough time doing deals.  See if you can connect with a flipper or someone doing rehabs at your local REIG and see what they do when they look at a property to size up the deal.  I have seen that investors that try to use them especially initially get tied up in trying to fine tune the numbers and wind up missing the deal.

 Thanks for your reply! You’re absolutely right about spending too much time on spreadsheets. I’ll be getting myself out there and speaking with flippers very soon

There's nothing wrong with using excel sheets especially early. Actually, you should always do this so you are able to estimate future rehabs budgets (that's what I do).

Ignore these BP, etc estimators. They are garbage. Take an excel sheet and put 1 side for labor and other side for materials. It simplifies a big project. Instead of budgeting per room (confusing and not accurate) just label it by flooring, cabinets, plumbing, hvac, etc. You will find these will get you more accurate.

And I gave found, I am always under my rehab estimate. Prices go up and things pop up during rehabs. Plus, building department government nuisance nonsense.  Good luck!