Updated about 10 years ago on . Most recent reply
Near-Full House Rehab Estimate
I am a genuine newby when it comes to trying to estimate rehab. I have never owned my own home and I have never worked as a contractor. I have been meaning to read the book on estimating rehab costs (but Ive been reading more basic books first). I have been looking in the Denver market (read insane) and I am continually shocked how high properties are selling for.
Anyway, there is a 3br/1ba SFR selling for 180K. The inside needs to be completely redone on the including the water heater and the HVAC. I didnt see any signs of foundational cracking/major water damage/and the roof didnt have major visible wear and tear (I didnt climb up there). It has 6 rooms total and is 1008 sq ft. It was built in 1948 but doesnt have any clear signs of asbestos that I saw (popcorn ceiling/asbestos tile). It has wood flooring that is in liveable (but not nice) shape, and it looks like carpet is covering the rest of the hardwood.
I would estimate ARV to be between 270-320K. Most recent sales being near the 320K mark. Ive heard the podcast talk about the 70% rule a fair amount, but I dont know what a realistic estimate for the rehab would be. I would plan on putting in higher end furnishings (stainless steel appliances/granite counter-tops/and blowing out one of the kitchen walls to turn it into a more open concept style...yeah, lots of HGTV being watched at my house right now). I thought I would reach out to the community to see how people with more experience would estimate this rehab. Thank you for your opinion in advance.
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You need to find a competent contractor to walk through and to discuss what you want to do. Maybe @Anson Youngwould be interested or could give you a name. Otherwise you are walking into far too many variables.