Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
10y
You're not going to be able to analyze based on square footage or number of rooms. You're going to need to learn how to estimate by creating a scope of work and then signing values by getting bids.
Contractor · Cleveland, OH · Member since 2016 · 56 posts · 19 votes
10y
Hi Kiran Alisam ,
Congratulations on your purchase! I'm assuming you bought in Cleveland, Ohio, if so which suburb/ neighborhood? Regardless of the area, it will be difficult for you to get any prices without knowing the current condition of the house. Is there water/ fire damage? Is the foundation splitting? Is it stripped to the studs? The list goes on.
Pictures are helpful, but if you can't provide those, you'll at least have to describe the work that needs to be done to even start to get an idea for estimates.
I could go on asking a million questions, the more information you can provide, the more accurate price ranges you'll get. It'll also be helpful to provide an example/ prices of what you want your end product to look like.
Hope to hear back,
Tom Kuhen
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
10y
You're not going to be able to analyze based on square footage or number of rooms. You're going to need to learn how to estimate by creating a scope of work and then signing values by getting bids.
Real Estate Agent · Atlanta, GA · Member since 2016 · 23 posts · 12 votes
10y
Hey @Kiran Alisam, I typically like to make a checklist with anywhere from 10-20 categories. Examples of these categories would include things like foundation, painting & flooring, windows, bathroom, etc. Go through each one and estimate how much it would cost to repair each category. The best way to learn how to estimate the repair cost IMO is just google the item you need replacing to get a price or go to Lowe's or Home Depot and just walk around and look at the prices. You'll find most things are cheaper than you'd expect to replace or update. Another thing to keep in mind is if/how you plan on changing the floor plan of the house. Sometimes it makes more sense to move a wall to open up a room or add a bathroom to get the desired bed/bath count. To estimate the cost for the changes to the floor plan you should consult a contractor. Add all the categories up to get a ballpark rehab number. Once you have that number, contact a few contractors walk them through the house and explain what you want to do. Get a couple bids from multiple GC's and then pick the bid you like best. Hope this helps and congrats on the new investment!
There is no short cut to this. You have to look at the property and determine what works needs performed and estimate the cost of doing said work. You will not learn how to gauge the cost of said work until you have gone through several rehabs and performed and or paid for the work.
At this point you need to contact some G.C's and have them provide you with quotes.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
10y
For reference, I authored two books for BP, one of which is specifically geared towards teaching the methodology for estimating rehabs...feel free to check it out:
Investor · Phoenix, AZ · Member since 2012 · 108 posts · 49 votes
10y
@Kiran Alisam. What is your strategy on this house? I'm just curious as you stated that you already purchased it yet you don't know what rehab work is required.
@Tom Kuhenthe property is in Garfield Heights Area,
@Aaron R. I have got the bid on the property with the repairs required, but wanted to check in this forums on how to select the contractor based on the bids, Is it purely based on Price , or Referrals
This would be the first time i would be working with them
@Kyle Gray Thank you for the extensive reply , how do i get involved in the selection of items as the contractor is going to do the selection for us on whats required based on the bid submitted, Please let me know how i can get involved in the selection