Rehab Price

11 Replies

Find the owner(s) and have a licensed contractor with you when viewing its interior to get the rehab estimate. Without the owner(s) either being there or giving you consent to enter, its otherwise a crime to enter. I'm guessing that's the case throughout the USA.

Kudos,

Mary

Do you want a quick way to figure rehab costs? If you can measure the size of the house from outside when you can't get inside simply figure the square footage. If you can peek inside from a windows determine if it will be a simple fix and flip, a middle of the road or a total rehab, use this simple formula that I use for a quick estimate. For a simple fix and flip such as painting, flooring and simple repairs - $10/Sq. Ft.; for a middle of the road rehab such as upgrade kitchens and baths with the simple fix route - $20/ sq. ft. ;  And a total rehab with roofing, kitchen, baths, flooring, painting, windows, etc. $30/ sq. ft. .

As an example, say you have a house with 1000 square feet on a simple rehab the quick estimate would be $10,000. The same house on a middle of the road rehab is $20,000.

And the total rehab cost estimate would be $30,000

So try that and you will find that you will be close to the actual numbers.

Originally posted by @Mike Sedlacek :

Do you want a quick way to figure rehab costs? If you can measure the size of the house from outside when you can't get inside simply figure the square footage. If you can peek inside from a windows determine if it will be a simple fix and flip, a middle of the road or a total rehab, use this simple formula that I use for a quick estimate. For a simple fix and flip such as painting, flooring and simple repairs - $10/Sq. Ft.; for a middle of the road rehab such as upgrade kitchens and baths with the simple fix route - $20/ sq. ft. ;  And a total rehab with roofing, kitchen, baths, flooring, painting, windows, etc. $30/ sq. ft. .

As an example, say you have a house with 1000 square feet on a simple rehab the quick estimate would be $10,000. The same house on a middle of the road rehab is $20,000.

And the total rehab cost estimate would be $30,000

So try that and you will find that you will be close to the actual numbers.

 Thanks Mike. Tried your calculations on a rehab I did with my old boss and it was only off by about $800. 

Originally posted by @Mike Sedlacek :

Do you want a quick way to figure rehab costs? If you can measure the size of the house from outside when you can't get inside simply figure the square footage. If you can peek inside from a windows determine if it will be a simple fix and flip, a middle of the road or a total rehab, use this simple formula that I use for a quick estimate. For a simple fix and flip such as painting, flooring and simple repairs - $10/Sq. Ft.; for a middle of the road rehab such as upgrade kitchens and baths with the simple fix route - $20/ sq. ft. ;  And a total rehab with roofing, kitchen, baths, flooring, painting, windows, etc. $30/ sq. ft. .

As an example, say you have a house with 1000 square feet on a simple rehab the quick estimate would be $10,000. The same house on a middle of the road rehab is $20,000.

And the total rehab cost estimate would be $30,000

So try that and you will find that you will be close to the actual numbers.

Ugh.  Please don't take this advice -- you WON'T be close to the actual numbers using those per-square-foot numbers in that area.  In northern California (even in the East Bay), it can cost upwards of $250/sf to build new construction, and you won't be able to get pretty much anything done for $10/sf, and probably won't be able to get much done for $30/sf.

Material costs on the west coast are higher, insurance costs in CA are through the roof, regulation is crazy and lots of other stuff contribute to the high costs -- but it all boils down to the fact that prices are much, much higher in California than most of the country.

I actually disagree with the $10/$20/$30 even in cheaper parts of the country.  I've done hundreds of flips in one of the lowest priced areas of the country (Atlanta) and have never spent less than $12/sf for a retail flip.  And that's a market where I can build new construction for $60/sf.

Absolutely. It is definitely about the area. In my town of 40,000 people prices are low compared to other area across the country. I did a simple rehab on a house of 1400 Sq. ft. with complete interior painting, new flooring, upgrade kitchen with new counter tops and appliances which I purchased scratch and dent from a retailer, including dumpster for construction debris and clean out debris. The project cost me $10,500 plus change. I had the project done and ready for sale within 2 months. Drywall is under $10, paint is under $30. Carpeting is under $4.00 a square foot. Post form counter tops under $200 for a 10 feet piece. Plus other items as you can get an idea of prices here in my town.

Originally posted by @Mike Sedlacek :

Do you want a quick way to figure rehab costs? If you can measure the size of the house from outside when you can't get inside simply figure the square footage. If you can peek inside from a windows determine if it will be a simple fix and flip, a middle of the road or a total rehab, use this simple formula that I use for a quick estimate. For a simple fix and flip such as painting, flooring and simple repairs - $10/Sq. Ft.; for a middle of the road rehab such as upgrade kitchens and baths with the simple fix route - $20/ sq. ft. ;  And a total rehab with roofing, kitchen, baths, flooring, painting, windows, etc. $30/ sq. ft. .

As an example, say you have a house with 1000 square feet on a simple rehab the quick estimate would be $10,000. The same house on a middle of the road rehab is $20,000.

And the total rehab cost estimate would be $30,000

So try that and you will find that you will be close to the actual numbers.

 I actually like those formulas as a quick estimates (see original question) It could be comparable to the the classic 2% rule that is so popular . Naturally you would make some adjustments according to geography. We have our crews on a payroll system and @Mike Sedlacek is running  his own jobs   so the estimates should be good for a quick guess naturally once you get an actual walk thru of  the property you would tighten up your estimates 

I live in the San Francisco Bay area, and if I could use the $10-$30 rough estimates per square foot for rehab, I'd be living in a mansion!  $10-$30 won't work here, so I'll go with J Scott's suggestion of using up to $250 per square foot as an estimate, since I've received estimates like that before when asking for improvements to my own home in the East Bay.

Originally posted by @Mary Ann Casey :

I live in the San Francisco Bay area, and if I could use the $10-$30 rough estimates per square foot for rehab, I'd be living in a mansion!  $10-$30 won't work here, so I'll go with J Scott's suggestion of using up to $250 per square foot as an estimate, since I've received estimates like that before when asking for improvements to my own home in the East Bay.

J Scott's example of $250/SF was for new construction; rehab will be much lower than that...just not $10-$30/SF.

Originally posted by @Chris Brown :

J., what are your ballpark numbers per square foot for low/middle/high rehabs in Metro Atlanta?

It depends on LOTS of things:

- Are you going to hire the individual trades or bring in a GC to manage/hire everything?

- What level of finishes?

- What level of quality do you expect?

- What kind of contractors do you plan to use?

- How good of a negotiator are you?

- How good are you at managing issues and solving rehab problems?

Personally, all my Atlanta rehabs cost between $12/sf (for full cosmetic rehabs) to $40/sf (for gut rehabs).  

If you go on my blog, you'll find posts like these for many of the first 50 houses I rehabbed containing detailed budget breakdowns:

http://www.123flip.com/house-38-budget-recap/

Good stuff, thanks @J Scott. I've reviewed the 1st 50, I need to review them again. I've got the books, halfway through the first. 

- Chris