What's a Good Minimum Rehab Cost Estimate??

Question

I'm going through the process of analyzing properties to see if they'll get a good CoCROI. Most of the properties I'm looking at are in relatively good condition (i.e. NOT fixer-uppers or foreclosures).

When you guys estimate costs, do you have a "minimum estimated rehab cost", meaning even if the house is in good condition, there's a good chance you'll have to do some touch ups, maybe some new paint or carpeting before you start renting it out?

Thanks and let me know, I appreciate it!

Jason D. · Answer

@Zachary Schimenz if you know what it needs, I would put an estimate together based on those things.

If it needs nothing, I estimate $5 sqft.

Whitney Hutten · Answer

J Scott has a great book on estimating rehab costs.  You can also take a look at different project costs on a site like Homewyse.  It will give a high/low for the area... though you should always do your own scope of work with your desired finishes.  The more scopes you do... the better you will get at it when you even see the pics.

Greg Dickerson · Answer

@Zachary Schimenz this will vary greatly on the size of the house, number of bedrooms and baths, level of finishes in the house, overall condition. If you’re looking to do rentals vs flips the price point  of rent will make a difference as well. The more you want to charge the nicer the property needs to be unless you have a high demand area. Best thing is to get some ball park numbers from some contractors on what you are looking to do and go from there.

What's a Good Minimum Rehab Cost Estimate??

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