Closing deal in progress..Need opinion on my estimate.

18 Replies

3 Bedroom single family 1,058 sqft

Hello BP's. I have a deal in progress and I will be flipping a house in an area where home goes for about 75 - 89k some even a little more, looking at the comparable's. I have an estimate sheet and this is my first flip. I have to give the appraiser my estimate, but I want to hear other folks opinions on my numbers. I know there are a lot of other factors, but I just want to hear folks' input. I provided the estimate that I came up with and pictures. 

Met with one contractor the is actually being a high school friend, but we haven't seen each other for years. He works on expensive high end homes and gave me an estimate of 20k to make it look really nice. However, the point of him coming to look at the house was to give me a some ideas and an estimate. He told me he was booked over the winter and would just help out with an estimate, but once he figured how serious I was then he wanted to get involved..

The second contractor who came to look at the house will be giving me an estimate by the end of the week

I'm meeting with a 3rd contractor today. In the meantime, I've been playing with what I learned and digested and researched.

Any suggestions or I'm I too high? Too high or too low? Any particular category that is too high or low?

BTW - its a 3 bedroom house 1,058 sq ft

@Charles Coaston - Seems like it should be in the ball park (its a very small home), although I would double check on the appliances.  You would be lucky to find a stainless frig for $1700 alone not including a stove and dish washer.  I like to try and think about how many MH's an activity is going to take and use  ~$50/hr.  The material you should be able to look up for the most part and measure how much you need.

Good Luck!

@Jonathan Klemm

 i was looking at my prices from Sears

http://www.sears.com/kenmore-25.2-cu-ft-side-by-side-refrigerator/p-04641153000P?plpSellerId=Sears&prdNo=5&blockNo=5&blockType=G5

When I flipped my first home which I use now as a SFR. Purchased dishwasher from from Craigslist for $60 looks brand new. You can find deals like this there as well. Look to see if they have an HD SUPPLY store there. that place has good deals.

I'd recommend asking the contractors to break out the estimates into unit prices as well ($/SF, $/LF, $/cubic yard etc...). I would also recommend breaking down your spreadsheet the same way. As an example for your "demolition" section, I'd figure out how much square feet (SF) of wall needs to be removed and show it on your sheet as $/SF.That way when you're done with the project you can go back to your original estimate and enter in the ACTUAL costs and compare to your estimate. This way you'll be better prepared for future estimates and have some concrete evidence of costs. You can use those unit prices moving forward and adjust accordingly. 

You can also use this website called "thumbtack" it gives you pros in your area available to do work. I sub contracted using this website. I would set up appointments for certain things for example a bathroom get different quotes for the whole remodel material and labor as well as labor only from each person, then compare and see whose best. Good luck hope this helps.

Originally posted by @Varinder Kumar :

You can also use this website called "thumbtack" it gives you pros in your area available to do work. I sub contracted using this website. I would set up appointments for certain things for example a bathroom get different quotes for the whole remodel material and labor as well as labor only from each person, then compare and see whose best. Good luck hope this helps.

 So I would be the general contractor in a sense right?

You can do as owner builder only thing is that if someone gets hurt on the job your responsible. Or you can have a general contractor who will most likely sub contract on his own for little jobs around the house. It might be cheaper to do owner builder how ever you have to subcontract to licensed individuals and again your responsible for their injuries etc. Also you have to obtain permits as well, the person you higher for the job can get permits also but they might charge you additional fee for that.

Is this a flip, or will be a rental? Are you carpeting the whole house, or keeping the floor (I can actually have hardwood refinished cheaper than carpet). Is the kitchen budget to redo the cabinets? what about counters, sink, faucet? Keep in mind, when you install the fridge and dishwasher there are ancillary items you need, water lines, drain and power lines for the dishwasher, etc. These small items end up adding up in the end.

I assume other than some touch up, you won't be working on the exterior? How is the roof, windows?

I think you need to plan on carrying some pricing for plumbing, electrical and even HVAC. I can't imagine doing a renovation and not having any of these costs.

I can definitely see the potential in the house. The wood floors could look really nice with a little work. The surrounding area looks nice - lots of green space. Kitchen appears to be a decent size and layout. Is the house structurally sound?

Budget questions/comments: No new lighting or plumbing fixtures? Countertops and backsplash in kitchen? Flooring budget seems a little low

@Brian Pulaski this is a flip and I'm carpeting the whole house except the kitchen and bathroom. The floors have cat pee on them : (. I was going to get a kitchen from maybe ikea or a like new from craigslist. Seen a lot of kitchen cabinets , faucets, sinks and counters for a decent price. The roof is good it just needs the gutters and i have a landscaping person. A 8X8 deck i need installed attached to the sliding doors. and the stair well entrance will be painted as well. 

The downstairs windows are good but the upstairs windows are older. I was thinking of just keeping it that way. 

@Bill Hinshaw solid all brick. needs new light fixtures and plumbing when kitchen gets installed for the dishwasher and fridge.

@Bill Hinshaw After a few estimates and appraisal.  After a few estimates and in and out the property, I pulled the trigger and got the person down a couple of grand to replace the roof. In the process of closing. I'll keep folks posted.

BTW dealing with a Hard Money Lender

Congrats Charles! I hope you do well with this house. Keep us posted.

Closed the deal got him down to 20k. All went nice a smooth like butter.  Starting the initial rehab process. I'm trying not to think of this in a bad way but I'm dealing with a hardmoney lender. The way they pay for the rehab cost is through draws as the work is completed. So, I get the work repaired and done then I request the money estimated to pay. I would like to have my money all at once to move like I want to move. I'm a hustler in a sense to where I look deals on cabinet and othe materials. This really holds up the process. Need to look on the bright side

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