Real Estate Investor · mckinney, TX · Member since 2011 · 29 posts · 4 votes
Well Well Well, my property manager just called and he guesstimated rehab #3 at 30-40 grand when I was expecting 15.
Lesson, an inspection is really nice and I strongly suggest one for people starting out. BUT you also have to consider aesthetics. Sounds like we might have to gut 2 bathrooms and a kitchen.
I strongly suggest for all newbies getting alot of experience estimating costs not only considering what is needed structurally but also aesthetically.
Thats just my 2 cents( or 15-25 grand) depending on how you look at it
Rehabber · Tucson, AZ · Member since 2008 · 1k+ posts · 802 votes
15y
A couple of questions here:
1) why is your property manager giving you an estimate? Is he/she a licensed contractor?
2) When you say asthetically, are you talking about quality of finishes?
I recently gutted an entire house which included new drywall, texture, paint, doors, windows, cabinets, granite counter tops, vanities, flooring, fixtures, and appliances as well as restructuring an exterior wall with two sliding glass doors which was all done for $34K.
If this is a high-end property, then I believe your estimate may be correct. However, if your talking about a median-priced home, then I would recheck your numbers becuase I can do two baths and a kitchen, paint and flooring on an average size meidan priced home for $20 to 25K easy.
Rehabber · Tucson, AZ · Member since 2008 · 1k+ posts · 802 votes
15y
A couple of questions here:
1) why is your property manager giving you an estimate? Is he/she a licensed contractor?
2) When you say asthetically, are you talking about quality of finishes?
I recently gutted an entire house which included new drywall, texture, paint, doors, windows, cabinets, granite counter tops, vanities, flooring, fixtures, and appliances as well as restructuring an exterior wall with two sliding glass doors which was all done for $34K.
If this is a high-end property, then I believe your estimate may be correct. However, if your talking about a median-priced home, then I would recheck your numbers becuase I can do two baths and a kitchen, paint and flooring on an average size meidan priced home for $20 to 25K easy.
Real Estate Investor · mckinney, TX · Member since 2011 · 29 posts · 4 votes
15y
I probably should have used the word guesstimate for the PM
We went by there the other day and will see again with PM and contractor. Bathrooms are ugly pink tile AND weird situation. Description says 2 baths actually its a vanity and commode on each side of tub so I would call it 1.5 baths
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
15y
After a few rehabs you should be able to go in and do a quick estimate of the repairs, particularly if you're using the same contractor. But if you're not sure, bring your contractor in before making an offer. Trust me, he will be more than happy to get a chance at doing the job.
And I agree with Scott, what does your PM have to do with rehab estimates?
And are the bathrooms separate rooms. If there's a toilet and sink on both sides of tubs then you need to get a wall in there to separate the rooms. Bathrooms, next to kitchens, are the most important rooms for buyers and tenants. I never play with those. If I can't patch things up so that those rooms look brand new, they get gutted and completely redone.
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
15y
I too am confused by your process of estimating rehab cost. You say you were expecting 15K and your PM called and told you to expect 30-40...what did you miss that made his estimate more than double yours? You say you have to gut the kitchen/bathrooms...why was your PM able to come to that conclusion but you had not? What process did you use to come up with 15k...was that just an overarching guess?
I am just curious as to what costs you missed and why.
Real Estate Investor · mckinney, TX · Member since 2011 · 29 posts · 4 votes
15y
Update-rehab bid approximately 22000. Bathroom(3000+-) complete gut. Floors float ceramic above dated tile. tub brand new, old tub rusting rusting and tiles not secured to wall(That was error/miss #1 we have now learned to check how well tile or shower wall is attached, if their is hollow sound problem, also was not careful in checking for rust. Vanity also rusted also needs to be replaced)
Kitchen missing cabinet doors and inside of cabinets with bad looking contact paper, also chipped tile and damaged trim on countertops(mistake just didnt realize it might cost so much to fix, it looked ok on the service, IT very likely wont cost too much more to put in new kitchen.
Mistake #3 needs sub floor where garage conversion. 500 dollar mistake. We didnt realize hollow sound was missing sub floor.
Rehab #4
We toured this property with PM this afternoon and are estimating about 16000. We initially had thought 8 thousand.
Mistakes installing new 4200 AC system, We were able to fix 1st AC and I think we had naive assumption AC could be fixed
#2Kitchen. We thought we were not going to fix countertops but one has popped up and another countertop has bowed.
Flooring. carpet is living room is worn out, there is no pile left. We missed this, and assumed we could clean. Result new vinyl plank flooring in halls living area and breakfast room. Tile in kitchen and bath.
Comments We were extremely lucky that 1st rehab was only 6000. We assumed that most of our other rehabs would run in that range. Since then it has been 22, 22(estimate) and 16000 estimate) AC systems are very hard to check out we will be asking AC contractor to review in inspection period. We will also be asking contractor to review properties during inspection period as well.