Cost per Square Foot Estimate

[Maxwell Hunter]

Question for my flippers/rehab specialist in Atlanta GA and the surrounding metro.  On a recent podcast (not BP Podcast), an investor was explaining that he estimates rehab costs based on an average price per square foot.

Does anyone in the area use this method to calculate rehab costs?  If so, what are you seeing typically?

Also, I would imagine it varies greatly depending on the type of flip (cosmetic versus extensive).  So are you using two or three different averages depending on the type of rehab?

[Chris Anderson]

I use a dollars per foot system for my rough estimate. For a new bath, kitchen floors paint hvac plumbing and electric. $55/foot works for me. A HMLot I know uses the same number for budgets. It's loose and can not be used for complete house redesigns. But for you average home, in order to make offers quickly, it works for me.