Rehab costs, need Estimator!
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!
Nobody works for free . And as a contractor I am NOT going to give you a price based on pictures . Not even a guestimate
@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.
Udachi!
Spasibo! Thank you a lot, I am on the right way
It's true, that in most areas, contractors won't want to visit your property prior to your having the property under contract, but paying them $300 for an estimate can overcome that. You can probably see that if you plan on investigating more than one property, how that can add up quickly before you even have a deal. So the best thing you can do is to educate yourself as quickly as possible.
For that, definitely check out the Jscott book, it's one of the best ways to get your estimating legs.
You might also want to check out this BiggerPockets blog post that I wrote a while ago:
How to Estimate Construction Costs For These 29 Common Rehab ProjectsCheers!
Kuba
If you are looking for a rough idea- Biggerpockets has a tool called the rehab estimator.
Link: Biggerpockets rehab estimator
-or-
Just go to the top of the screen, hit tools and demo the calculator.
I have not used it but I am sure it is pretty complete.
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.
$/Sf to rehab a house is a quick way to over or underestimate by a lot. Trying to find a quick way like this rarely works.
Guesstimate. Use google and you'll find several website that do give you ways to estimate costs for rehabbing. "estimate cost of replacing siding/flooring/paint". Easy.
I use 5k per bathroom. 15k for kitchen. 5k for mid grade flooring (1.5/sqft installation). Paint inside or out 3.5-4k +1k materials.
For materials, just lookup costs on home depot and start adding them up. use J Scott's spreadsheet.
https://www.biggerpockets.com/files/user/JasonScot...
I actually took that spreadsheet and started adding to it myself to show cheap, mid grade, and designer finishes, as well as adding line items relevant to my project.
Here's another useful file:
Step by step, trying to meet more pros and find mentors
Yes you are right, I just got that I would rather posted more questions on BP then bother contractors on this period of time. It is big but it’s interesting inside and for me when I am walking in houses like that just as new art - you imagine how would you make this house as for yourself and I want to fix all of them, I am like an hungry artist who wants more all the time and this house was really interesting for me and I’ve imagined different designs. But yes, I will stop myself more on educating for now, thank you
Guesstimate. Use google and you'll find several website that do give you ways to estimate costs for rehabbing. "estimate cost of replacing siding/flooring/paint". Easy.
I use 5k per bathroom. 15k for kitchen. 5k for mid grade flooring (1.5/sqft installation). Paint inside or out 3.5-4k +1k materials.
For materials, just lookup costs on home depot and start adding them up. use J Scott's spreadsheet.
https://www.biggerpockets.com/files/user/JasonScot...
I actually took that spreadsheet and started adding to it myself to show cheap, mid grade, and designer finishes, as well as adding line items relevant to my project.
Here's another useful file:
Yeep, that what I did, for middle size hose, I had one property as a sample, it’s 1200 sq ft, 3 beds one bath, and I was taking everything the cheapest. All materials that I found in Home Depot for one full kitchen and little bath would be 2225$, that was pile for the floor in bath and laminate floor in the kitchen (I don’t like this kind of floor but people like), then I got a question - Human Resources, I called two companies that were first in the google search and they weren’t really interested to give like an average estimate, but what I got kitchen 11k and bath 4k. But electricity, plumbing and air and heater, that’s gonna open more things to fix. And frustration about foundation
If you are looking for a rough idea- Biggerpockets has a tool called the rehab estimator.
Link: Biggerpockets rehab estimator
-or-
Just go to the top of the screen, hit tools and demo the calculator.
I have not used it but I am sure it is pretty complete.
You are a contractor) I am sure your brain is better)
It's true, that in most areas, contractors won't want to visit your property prior to your having the property under contract, but paying them $300 for an estimate can overcome that. You can probably see that if you plan on investigating more than one property, how that can add up quickly before you even have a deal. So the best thing you can do is to educate yourself as quickly as possible.
For that, definitely check out the Jscott book, it's one of the best ways to get your estimating legs.
You might also want to check out this BiggerPockets blog post that I wrote a while ago:
How to Estimate Construction Costs For These 29 Common Rehab ProjectsCheers!
Kuba
Gracias!
I do not think you will be able to find an effective calculator since every single area and every single project is unique. The best bet is to get local contractors to provide you with reliable quote and getting a local General Building Contractor to work with you in one of the best things you can do and add them to your team. There are times of the year contractors are busy so they do not have much time to go around providing people with cost estimates this is why you need to get one on your team so they are more accessible to you.
Maybe until you can get a contractor or some contractors on your team you may have to pay to have estimates provided to you.
You might think of going down to your local building department and having some discussions with them regarding costs. Many building inspectors work on the side providing services to builders and/or investors.
There are other ways to learn how to estimate rehab costs. Here's an example: start with a kitchen. How much are new cabinets? How much is a new counter top? How much is a floor? Just for the materials. Once you figured out the kitchen, move on to the bathroom.
@Alina Beryh when I am estimating repairs, I am using big round numbers to determine if it makes sense to purchase the property. $10K, $20K, $30K, etc. If it is so close that I actually need a contractor to give me the estimate before I buy the house, it isn't a good deal. Renovation costs almost never come in lower than the estimate. You should be able to narrow it down to a $10K window of repairs. Your purchase price should be low enough for you to be off and still make a profit. Otherwise, you are paying too much.
My brain is better, but it is through experience.
All costs vary regionally- this includes materials and labor.
I would still use the calculator for a reference point.
I have done multiple flips in Pittsburgh (southside & McKeesport) and until you get your construction team in place, you are going to be all over the board. The estimate calculator will give you a near enough idea that you may be able to ask somewhat educated questions on cost and why.
I would also recommend getting at least 3-5 bids on every aspect of your job. This is the beginning of your remodel- where you either will keep your project on track or not. It is well worth taking the time to do this, especially if you have never done a flip before.
Getting bids and understanding the process is not the place to be lazy.
I would also read Scott's book on remodeling costs ( on BiggerPockets book store).
Anyhow-good luck
I do not think you will be able to find an effective calculator since every single area and every single project is unique. The best bet is to get local contractors to provide you with reliable quote and getting a local General Building Contractor to work with you in one of the best things you can do and add them to your team. There are times of the year contractors are busy so they do not have much time to go around providing people with cost estimates this is why you need to get one on your team so they are more accessible to you.
Maybe until you can get a contractor or some contractors on your team you may have to pay to have estimates provided to you.
You might think of going down to your local building department and having some discussions with them regarding costs. Many building inspectors work on the side providing services to builders and/or investors.
I will check building department, thank you for idea and advice! I know one guy who is doing just inspections for houses, I think he might help me , thank you
There are other ways to learn how to estimate rehab costs. Here's an example: start with a kitchen. How much are new cabinets? How much is a new counter top? How much is a floor? Just for the materials. Once you figured out the kitchen, move on to the bathroom.
Absolutely that what I did, I got estimation by myself for kitchen and bath, but then question to you: how do you choose (or found) your contractors? Is there any criteria? Because yes we all can go to Home Depot and count materials, but how much is people work, above contractors were saying that’s it’s always different and can’t get the right estimate
I found a guy the hard way. I called another flipper and asked if he had knew of anyone looking for work. He led me to my guy - who I made a partner in my business.
@Alina Beryh when I am estimating repairs, I am using big round numbers to determine if it makes sense to purchase the property. $10K, $20K, $30K, etc. If it is so close that I actually need a contractor to give me the estimate before I buy the house, it isn't a good deal. Renovation costs almost never come in lower than the estimate. You should be able to narrow it down to a $10K window of repairs. Your purchase price should be low enough for you to be off and still make a profit. Otherwise, you are paying too much.
So you start with your profit and then you compare this round numbers of your profit to work and fixes that needs to be done? So if your profit will be 10 k but you have to do 70k repairs, it’s going to be tough deal, right? And it’s all about flipping, I am not saying for rent
My brain is better, but it is through experience.
All costs vary regionally- this includes materials and labor.
I would still use the calculator for a reference point.
I have done multiple flips in Pittsburgh (southside & McKeesport) and until you get your construction team in place, you are going to be all over the board. The estimate calculator will give you a near enough idea that you may be able to ask somewhat educated questions on cost and why.
I would also recommend getting at least 3-5 bids on every aspect of your job. This is the beginning of your remodel- where you either will keep your project on track or not. It is well worth taking the time to do this, especially if you have never done a flip before.
Getting bids and understanding the process is not the place to be lazy.
I would also read Scott's book on remodeling costs ( on BiggerPockets book store).
Anyhow-good luck
Thank you! Appreciate for your advice!
I found a guy the hard way. I called another flipper and asked if he had knew of anyone looking for work. He led me to my guy - who I made a partner in my business.
Thank you!
@Alina Beryh another technique is to try different contractors for different parts of the renovation rather than letting one company do the entire job. One guy does the outside repairs/paint. If you don't like them, find another guy to do the interior paint. Another to do the floors, etc. Once you find a good company that you like, give them the entire job next time. As a flipper, it's all about the ARV minus repair and holding costs. As a buy and hold investor, you don't need to be that close on the numbers because the longer you hold it, the more you make.
That’s a good point! So many people who ready help, that’s awesome! I got a lot learn now, thank you all!