I know this is a very generic question. But I just want to get an idea about the ballpark answer.
I have never done a full rehab of a 2BR 1BA. Based on what I was shown, this apartment is really in shambles.
Almost new drywalls (5/8) + pop corn + new doors paint + trims. About 10 doors total (main, 3 rooms, bathroom, kitchen, 3 closets, water heater room). My estimate: 4-5k
New carpet with padding. My estimate: 3-4k
New Bathroom. Tiles on the floor, vanity, mirrors, new shower and heads. My estimate: 2-3k
New HVAC Unit (not just the unit outside), Coil, ... etc will need work. My estimate: 6-7k
Complete new kitchen (Floor tiles, new Cabinets, new countertops, ...), and new appliances. my estimates: 4-5k
All my estimated include parts and labor (certified and insured electrician, plumbers, painters, ... etc)
Bed bugs/Pest control cost should also be added, I think.
Whole apartment is about 900 square feet.
Property was originally built in 1986 in NC.
Seller estimates less than 10k for this apartment to be rent-ready.
My quick assessment would be closer to 20k.
I want to make an offer, but I told seller, I need to deduct the make-ready costs.
Please chime in based on your experience. Really appreciated.
Hi @Henri Meli when I had a lot of multi units in Durham & Wake Co, I could turn a unit for less than $2k, do a face lift for under $5k, and an in-depth upfit for less than $10k. But if you start adding in a whole new HVAC system that can really move the price up.
You could always make your offer to go under contract at his number of $10k or a little above. Then during due diligence get your contractor or subs out there for estimates, then negotiate down further if it comes in a lot higher.
Henri, these estimates seem generally in line with what I would expect, except for the bath and kitchen which seem low. Since it is an older unit and in shambles, don't be surprised if unplanned plumbing and electrical work will be required. I don't know to what level you will finish the apartment, but I would budget more money - another $5k at least. And I agree that you can get the unit under contract and negotiate the price down as you have more concrete estimates.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing