Pittsburgh · Member since 2018 · 43 posts · 9 votes
Hello, as a beginner I am learning how to count all costs for repairs but I can’t find any good estimators or contractors who could help me to find out estimate to fix one big house. I am interesting to buy 5 bedroom house, but there is a lot of stuff that needs to be done. I have a hundred pictures that I could send and explain what we would like to do, thank you!
Investor · St. Louis, MO · Member since 2016 · 65 posts · 82 votes
7y
@Alina Beryh, there is a Cost vs Value report, as a real estate broker, I’d recommend to my buyers in San Diego. You can find it online for free and download it for your area.
It gives you the low to high costs to remodel every part of a house ie. deck remodel etc. It’s a good indicator of what thing will cost and the percentage you’ll get back on your investment to sell.
The issue is when a contractor starts work, opening walls etc, they are likely to find other things that can’t be seen before getting into it. This is where you may find costly structural repairs.
Contractors also use a different software programs to make bids. You could look into bidding software yourself and calculate the repairs.
Last but not least, google it! Do a long tail keyword phrase search. Google search “roofing cost in Pittsburg” you should get a price per square foot for shingles, decking replacement etc.
GOOD LUCK!!!
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
7y
Go to the book section of BP and order J Scott's books on Flipping Houses and estimating rehab cost. You will find a detailed break down of work and specific costs, close enough that you can at least create a budget and make a decision about an offer.
However, I would recommend start with something more simple than a large 5BR home. In our area bread and butter for flippers are 100-200k 3BR/1.5BA ranch homes. They are much easier to work on. You should make a 15-20k profit, but if you make mistakes, chances are the check you will have to bring to closing is not going to wipe you out.
The other option is to partner with an experienced investor - you will do all the work and split your profit - but thats the best education you can get.
Flipper/Rehabber · Portland, OR · Member since 2014 · 5 posts · 0 votes
7y
In my professional experience, what's been said above is mostly true BUT I have had really good success in 1) identifying my rehab costs as 15% of the after repair value and 2) using the remodeling calculator at https://www.remodelingcalculator.org/ to help me determine costs of the rehab in my area.
This is not an exact science because you can never know 100% of what is wrong with the property nor is the calculator spot on but it will certainly get you in the ballpark. You just need to make sure you're using the (70% of ARV - rehab) formula when making your offers and you'll do fine.
Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
7y
@Alina Beryh
When I do flips/rehabs for my clients (especially foreclosures), I charge time & materials. Once you get in there and start opening things up, you never know what you’ll find. I simply won’t put a price on bringing a house back into shape. It takes to much time to try and figure everything out, and there’s always more. 15 years in business and my clients are thrilled with my work. I’ve known quite a few contractors get burned quoting whole house rehabs. Example- I’m finishing a house now, owner guesstimated about $5k, “only needed some fixing, paint, carpet”. Ended up being all new plumbing, broken radiators, all new windows, etc on top of the initial thoughts. A typical house I rehab, figure 1300sq ft, ends up around $25k. Sometimes more or less, but that’s taking a dump and turning into something flippable or higher end rental. Good luck in your endeavors!
Flipper/Rehabber · Roseville, MN · Member since 2018 · 73 posts · 38 votes
7y
@Alina Beryh check out the book on flipping houses by J Scott Its on the BP store It has oodles of InformatIon on cost estImatIng. That should st least gIve you enoIgh InformatIon to decIde to purchase the house. Make sure you set a 5-10% contIngency In your budget. Once that is done then it’s just finding the people to do the work. You will know how much you want to spend in each category and you can go from there!
Good luck!!!
Pittsburgh · Member since 2018 · 43 posts · 9 votes
7y
@John Burke I just recently jumped on one of the investors meeting, I am trying don’t be rude and do it carefully. I am afraid to be annoyed to somebody, but thank you
@Alina Beryh check out the book on flipping houses by J Scott Its on the BP store It has oodles of InformatIon on cost estImatIng. That should st least gIve you enoIgh InformatIon to decIde to purchase the house. Make sure you set a 5-10% contIngency In your budget. Once that is done then it’s just finding the people to do the work. You will know how much you want to spend in each category and you can go from there!
When I do flips/rehabs for my clients (especially foreclosures), I charge time & materials. Once you get in there and start opening things up, you never know what you’ll find. I simply won’t put a price on bringing a house back into shape. It takes to much time to try and figure everything out, and there’s always more. 15 years in business and my clients are thrilled with my work. I’ve known quite a few contractors get burned quoting whole house rehabs. Example- I’m finishing a house now, owner guesstimated about $5k, “only needed some fixing, paint, carpet”. Ended up being all new plumbing, broken radiators, all new windows, etc on top of the initial thoughts. A typical house I rehab, figure 1300sq ft, ends up around $25k. Sometimes more or less, but that’s taking a dump and turning into something flippable or higher end rental. Good luck in your endeavors!
That’s one of fear, but I want to do it so much! Thank you for sharing your experience
Go to the book section of BP and order J Scott's books on Flipping Houses and estimating rehab cost. You will find a detailed break down of work and specific costs, close enough that you can at least create a budget and make a decision about an offer.
However, I would recommend start with something more simple than a large 5BR home. In our area bread and butter for flippers are 100-200k 3BR/1.5BA ranch homes. They are much easier to work on. You should make a 15-20k profit, but if you make mistakes, chances are the check you will have to bring to closing is not going to wipe you out.
The other option is to partner with an experienced investor - you will do all the work and split your profit - but thats the best education you can get.
Yes, this house located in rich and high income area, that’s why I get crazy about getting it. What is the easiest deal that you would recommend to start with? I recently did foreclosure auction and with attorneys help got my F&C house, and I am scary to do rental deal
Pittsburgh · Member since 2018 · 43 posts · 9 votes
7y
@Bryan Burke could you tell me a little bit more about 70% of the ARV - rehab formula? Or what would you recommend to read about flipping and rehabbing?
@Alina Beryh check out the book on flipping houses by J Scott Its on the BP store It has oodles of InformatIon on cost estImatIng. That should st least gIve you enoIgh InformatIon to decIde to purchase the house. Make sure you set a 5-10% contIngency In your budget. Once that is done then it’s just finding the people to do the work. You will know how much you want to spend in each category and you can go from there!
Rental Property Investor · Amityville, NY · Member since 2018 · 351 posts · 441 votes
7y
Ask everyone you know for referrals
Network with other experienced flippers/investors
Partner with a contractor for a share of the profits.
Or pay a very good sum of money for their time. If someone offered me a 3-400$ I would absolutely give them a few hours of my time and go with them to look at property and calculate costs. Who knows may even get the work for it or some other work in the future.
Flipper/Rehabber · Slippery Rock, PA · Member since 2015 · 18 posts · 7 votes
7y
I have props north of pittsburgh and have done some flips around the area. It might help if you check out sites like HomeAdvisor. It will give you a general cost. You can plug in your zip code. Mind you it doesn’t go into any details regarding actual products but can give you a low to high avg cost. Always, always add at least 20% to your budget for changing your mind or unforeseen issues. Which out here, there are always unforeseen stuff you have to deal with.
If you’re looking at a house that hasn’t been updated in 20 years (look at the disclosures), you should include plumbing, electric, roof to be on the safe side.
If you have more questions pm me, i’ll try to help.
Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes
7y
@Alina Beryh there are a lot of great responses in this thread. You are asking the right questions.
Try this -- use the resources here that others have provided, and do your best to build a list of repairs... sometimes this is called a scope of work. Make sure you cover the big items -- roofing, flooring (carpet, tile, hardwood), heating and air, and then foundation/basement, etc. Electrical and plumbing might also need work. It won't be perfect, but just do your best.
Then maybe you can find some local investors/flippers in your area that can help you assign some 'estimated values' for the costs associated with that work. You can meet people that can tell you roughly what they pay for painting inside or outside, or what they pay to replace doors/windows, or flooring. Roofers can price you out using satellite imagery, without even needing a visit (for a new roof -- spot repairs will need a visit). But whatever the case, the first step is try to get a good understanding of what work needs to be done. Then get some help from others.
Now here is another idea -- go see a hard money lender. Get pre-qualified, and see if they like the deal. They will check your ARV/comps and your repair estimate. A good HM lender will actually go out and walk the property to check your estimates. Mine did, and he told me that my repair estimates were low. And it turned out that he was correct. He actually tried to dissuade me from doing the project, and I wish I had listened to his advice. I was able to complete it, but it wasn't profitable for me. But I sure did learn something about estimating repair costs.
Also the best contacts locally that I have made, that are the most successful 'real investors' here in Houston, I have met right here on BP. So keep asking and keep networking. Find somebody that knows what you are trying to learn, and see if they are interested in working with you on your project.
Sacramento, CA · Member since 2018 · 9 posts · 5 votes
7y
@Alina Beryh, I'm new at this too but Ive actually used Home Advisor to look up potential costs based off of job records they have. That way you can get a ball park estimate for free. Just keeping in mind its ball park and not actual. If you know what needs to be done, tear down wall, add new room, complete new Bathroom, etc. it actually gives you some figures. Good luck dear.
Rental Property Investor · Hartford, CT · Member since 2017 · 168 posts · 163 votes
7y
@Alina Beryh
BiggerPockets has a rehab estimator calculator.
I also recently read an article on BP that breaks it down to a simple formula. Price to rehab per sq ft x sq ft of the home.
You could try talking to some people who are doing rehabs in your area to find out what the general cost per sq foot is. Then just do the rough and dirty calculation to come up with a ball park.
I also recently read an article on BP that breaks it down to a simple formula. Price to rehab per sq ft x sq ft of the home.
You could try talking to some people who are doing rehabs in your area to find out what the general cost per sq foot is. Then just do the rough and dirty calculation to come up with a ball park.
Yes that’s first calculator that I started using, I got one contactors firm and for the first time they’ve been nice and welcomed, but when I ask for second house that I’ve also been interested they were busy, so I think it’s just the season, when everybody bought house in summer and they are trying to finish their projects before winter come
@Alina Beryh, I'm new at this too but Ive actually used Home Advisor to look up potential costs based off of job records they have. That way you can get a ball park estimate for free. Just keeping in mind its ball park and not actual. If you know what needs to be done, tear down wall, add new room, complete new Bathroom, etc. it actually gives you some figures. Good luck dear.