Calculating repair costs

[Kristopher Govea]

I'm just getting started so please excuse my novice question but how do you calculate the repairs on a flip? I was told an easy formula is the square footage of the house times $30. Is this a good tool to use?

[J Scott]

Thank you, @Kuba F. and @Scott Scheel!

Kristopher - I wouldn't recommend using that calculation to estimate repairs.  There are a lot of things that factor into the cost of a renovation, and using a random value (like $30) won't necessarily get you anywhere close.  

For example, does the $30 assume you're going to be putting in vinyl flooring and laminate countertops?  Or does it assume you'll be putting in marble floors and granite tops?  

Does it assume that you need to gut the house down to the studs and fix a bad foundation? Or does it assume you just need to update the cosmetics?

Does it assume you live in rural Mississippi or downtown New York City?

Does it assume that you're hiring a high-end GC and large-scale subcontractors?  Or that you're GCing the project yourself and hiring undocumented labor?

Does it assume you're renovating in the summer in Florida?  Or the middle of winter in Alaska?

Does it assume you're great at negotiating labor and material prices?  Or that you'll be paying retail?

All of these -- and lots more -- things will contribute the cost of the renovation.  There's no rule of thumb that will get you an accurate estimate, unless perhaps if you're on your 50th rehab and all your projects are pretty much the same.