Why does my quick and dirty rehab estimate not work?

[Cesar Saenz]

I estimated a $20 per square foot reno on a 936 sq ft home. Isn't this supposed to include things like windows, doors, cabinets, bath, drywall etc. I thought the average for estimating was somewhere between $8-!5 dollars per square foot. Now im trying to keep costs inline and the numbers dont work unless i do all the work. i thought these figures were going to include labor costs. Whats the deal. It barely covers material if Im doing all the work myself. Whats the wrong?

[J Scott]

This is discussed a lot around here -- you SHOULDN'T use per-square-foot pricing to determine your rehab costs.  Unless you're an expert at estimating costs, per-square-foot pricing is tremendously inaccurate.

Pricing will depend on:

- Location

- Type of house

- Level of finishes

- Time of year

- Type of contractors

- Your negotiating ability

- Lots of other stuff

If you don't take all of that into account, you can't come up with an accurate estimate.

You mention $8-15/sf -- in some places, on some types of houses, with certain level of finishes and certain contractors, I can do a full cosmetic rehab for that price.  In other areas, other types of houses, different level of finishes, and different contractors, that wouldn't even get me paint and carpet.

Spend some time reading other threads about how to estimate -- learning the methodology takes time and practice.  You can also check out the BiggerPockets book on estimating rehab costs...I wrote it, so I'm probably biased, but I think you'll find it to be tremendously helpful.