I could use some advice as to how people do repair estimates. i go by the 10,20,30 per sqft depending on condition of house? is this a good method? i would appreciate if there are better methods.
Depends on your level of experience in that neighborhood, and who the numbers are for. If you always stay in the same neighborhood and do the same amount of work and are able to find the same quality of contractor and are ok with a certain margin of error and the deals still pencil for you, then your method is probably fine. If you're running these numbers to market wholesale deals, then I as a buyer appreciate tighter numbers.
Run with a heavy contingency like 25% if you are using sf method. There is rsmeans you can use for estimating.
Welcome to BP.
It's very hard to come up with a benchmark number as different markets will have different numbers. Having said that, if you pick a market and have done quite a few renovation projects, you will find a reasonable estimate.
I would never trust a magic SF price. My last house was a 1740 SF colonial and it was a large remodel. I came in at eight around $40/SF. I am currently doing a 1760 SF colonial, also a large remodel. I am projecting about $65/SF. If I based my estimate on that $40/SF, I would be upside down and losing a ton of money (most of the projected profit).
@Juan Najar "Repair estimate" for what? There is no better way to lose money than to try and estimate renovations by the sq ft. There is no shortcut. Figure out what needs to be done and then get actual estimates.
If you do not know how to do accurate estimates, based on actual work required, hire a qualified contractor to do the estimates.
@Juan Najar I agree with the two comments above. There is no shortcut on estimating rehabs per sqft. Determine your scope of work first and then get contractors to give you quotes. Once you start doing this, you will start to be able to determine the $/sqft for specific line items on your scope of work and can build a spreadsheet. Once you build a spreadsheet, you should be able to be within 10-15% of the actual costs (not including contingency %) within an hr or so.
check out Dave's fileshare for some spreadsheets to help you with some estimates.
truly identify what needs to be done or just schedule a contractor to walk through a prospective house with you and ask him a lot of questions.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.