Repair Cost Process?

Question

J Scott · Answer

This is my process, in detail...   I can estimate a typical house in about 20 minutes to within about 5-10%...

https://www.amazon.com/gp/aw/d/0988973715/ref=mp_s_a_1_1?ie=UTF8&qid=1493402168&sr=8-1&pi=AC_SX236_SY340_FMwebp_QL65&keywords=the+book+on+estimating+rehab+costs&dpPl=1&dpID=41gSEH-kwSL&ref=plSrch

J Scott · Answer

The entire book lays out the process I use.  If you purchased the book from BiggerPockets, it came with spreadsheets that organize the rehab process into sections, with line-item tasks within each section.  With some research and practice, you should able to fill in the line-item tasks with the costs you'll expect in your location (and any additional tasks that are common to your properties), and then be able to walk through  a property in 15-20 minutes with that spreadsheet to work up your estimate.

Brenda B. · Answer

We started our first flip yesterday and we'll have @J Scott's two rehab books worn out by the time we're done!

Mike V. · Answer

I actually have that book, what page section are you referring to? Great book. It's helped me a ton

Jim Adrian · Answer

Mike V.

Cost per square foot is a good ball park number and may work on some things.  Doing so, you should carry a contingency % as well, like 15%.   The more detailed you are the better as this forces you to think about the little things as well.  Here is a good source for construction cost.

https://www.rsmeans.com/

Andrew Johnson · Answer

Mike V. I don't think this will apply to you at all, but here goes.  I have a PM that has developed properties in the past and is connected to contractors.  I also use her as my realtor for local properties where I have bought.  She can walk a property (before I fly out) and give me a ballpark of what the costs will be based on the builders that she knows.  Odds are almost 100% that I would go with whomever she recommended for the actual repairs or rehab so it works out.  So I'm getting maybe ~80% of the accuracy of what I could paying a GC to walk the property but I'm getting it free and (most importantly) before I buy a plane ticket to come out.

In most cases it comes by far (far) higher than the pictures would indicate.  Repairs (no massive rehab) that have been done post-purchase have come in darn close to the projected cost.  That said, I always advise her (my PM) to be conservative when looking at the costs.  I'd rather know (and budget) that I'm paying $5K than having a $2K budget and it costing me $4K.  Which, I know, makes zero sense from a dollars and numbers perspective but I'd always rather be pleasantly surprised.

I'd actually love to hear your process.  I stumbled into mine through practicality.

Repair Cost Process?

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