What's your process for creating a renovation plan and estimating rehab costs for your projects?

[Shaun Caldwell]

Rehabbers/flippers, what's your process for creating a renovation plan and estimating rehab costs for your projects?

[Steve Wilcox]

The Scope Of Work is determined based on what is needed to do to bring the house up the standard used to establish your ARV.

All items are broken down based on categories, and priced accordingly. 

So we outline all major systems (plumbing, electric, hvac), roofing, siding, windows, flooring, ect. Total up all the columns, don't forget trash removal, as well as a 10% buffer on whatever the total amount is or $5k (whichever is greater)

We rehab a fair number of our own projects and I also own a construction co so pricing is a bit easier as I know what all my vendors charge and what things should cost. When starting out this may not be as easy but J-Scott wrote a great book on pricing. Also if you call in a few contractors to give itemized bids you will start to get an idea of what things cost and at least have ballparks for items like a kitchen, bathroom, a roof. 

So first step is to create a very detailed scope of work, then itemize everything that needs to be done in that scope by trade or category, and tally it all up. 

This becomes easier the more practice you have at it.