Estimating rehab cost for a duplex

Rental Property Investor · Athens, GA · Member since 2019 · 28 posts · 13 votes

Can someone check my rehab estimate on this duplex?

https://youtu.be/7eoE9oaDEzM
This is a 2Br/1bd per side duplex, 1848 sqft.

The interior of one unit is very bad, but the other unit is fine. Each unit is 924 sqft.

From what I can see in the video, it needs new roof. The soffit, fascia, and some of the siding needs to be replaced. Exterior paint and interior paint. Vinyl Flooring. New vanity for bath room. Cleaning.

+Soffit and fascia + Siding replace: 3000

+Roof Replace: 5000

+Exterior Paint: 2500

+Interior Paint (1 unit): 1000

+Vinyl Flooring (1 unit): 2000

+Bathroom Vanity: 250

+Cleaning (1 unit): 200

Total Rehab Cost: ~14k

P/s: I'm in North East of Atlanta, GA

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Greg Dickerson

Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes

@Hieu Bui Are you planning on doing all the work yourself or hire contractors?

I think you are very low on all line items. You should get hard bids to confirm your estimate.

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Greg Dickerson
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
@Hieu Bui Are you planning on doing all the work yourself or hire contractors?
I think you are very low on all line items. You should get hard bids to confirm your estimate.
4 Reply
Hieu Bui
OP
Rental Property Investor · Athens, GA · Member since 2019 · 28 posts · 13 votes
7y
@Greg Dickerson I plan to contract out the exterior and DIY the interior. I'll get bids for sure. Is it common to ask for bids before locking in contracts? Or contractors only give me bids if I own the place?
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Greg Dickerson
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
Originally posted by @Hieu Bui:

@Greg Dickerson I plan to contract out the exterior and DIY the interior. I'll get bids for sure. Is it common to ask for bids before locking in contracts? Or contractors only give me bids if I own the place?
It depends on your relationship with the contractors. If you are new and you don’t do much work you may have a hard time getting them to take you serious. Once you build a relationship they will do anything you ask if you treat them right.
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Hieu Bui
OP
Rental Property Investor · Athens, GA · Member since 2019 · 28 posts · 13 votes
7y
Originally posted by @Greg Dickerson:

Originally posted by @Hieu Bui:
@Greg Dickerson I plan to contract out the exterior and DIY the interior. I'll get bids for sure. Is it common to ask for bids before locking in contracts? Or contractors only give me bids if I own the place?
It depends on your relationship with the contractors. If you are new and you don’t do much work you may have a hard time getting them to take you serious. Once you build a relationship they will do anything you ask if you treat them right.
Thanks. Is there any particular items that I underestimate or Did I just pretty much lowly estimate on all items?
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Greg Dickerson
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
Originally posted by @Greg Dickerson:

Originally posted by @Hieu Bui:
@Greg Dickerson I plan to contract out the exterior and DIY the interior. I'll get bids for sure. Is it common to ask for bids before locking in contracts? Or contractors only give me bids if I own the place?
It depends on your relationship with the contractors. If you are new and you don’t do much work you may have a hard time getting them to take you serious. Once you build a relationship they will do anything you ask if you treat them right.
The roof is close but the rest looks very low. Like material cost only.
When you talk to the contractors of they are reluctant to give you a bid offer to pay them for their time and use that as an opportunity to a database of cost.
You could also call a couple of contractors on the phone and get rough sqft pricing from them for roofing, siding, painting etc. like how much the averages costs are per square (100 square feet) and square foot .
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Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
7y
I have a similar size duplex in Maryland . I would triple my estimate on that . You left out dumpsters , HVAC landscaping , just to name a few . I still may be low also . Remember its the busy season for contractors prices are up and you will wait your turn
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Hieu Bui
OP
Rental Property Investor · Athens, GA · Member since 2019 · 28 posts · 13 votes
7y
@Matthew Paul Wow didn’t think it would cost that much to do this. I based my number according to the book on estimating rehab cost by J scott
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Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
7y
there's going to be things there aren't visible. A good rule of thumb is materials time 3 you left out appliances potential plumbing problems potential electrical problems that looks to be more rot on that roof and meets the eye
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Hieu Bui
OP
Rental Property Investor · Athens, GA · Member since 2019 · 28 posts · 13 votes
7y
@Matthew Paul I’d not be able to estimate that until inspection, because the property is tenants occupied. I figured I’d estimate what I can see first. If there is more surprise, I’d negotiate post inspection.
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Jonathan BombaciBusiness Member
Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
7y
Yeah it looks a little short. Normally I put the property under contract with a real rough estimate. Then during the inspection period I'll bring in a couple contractors to get estimates. If the estimates are higher or pick up things I didn't think of I can either back out of the deal or renegotiate based on inspection items.
I try to bring in 2-3 contractors and I ask them to break the estimates out by job and that I'm looking to hire out most of it but may do some of the work myself because I'm interested in learning more. I find saying you're doing it to "learn" is better received then "i'm doing it to save on costs" since they may get the feeling you're going to micromanage them and scrutinize the budget. By asking for the break outs it'll give you a few ways to compare numbers on a comparable basis. Every once and a while a contractor will quote a job I was planning to DIY (like bathroom vanity) for less than I thought I could do it for because they have left over parts from another job, this makes it an easy decision. Other times they may quote something ridicules like $10k for painting because they're going to subcontract it and while I HATE painting it is something I can do for $100 and hour IF the budget is being stretched.
Hope this helps, you're asking the right questions. I wish I knew about BP when I was starting out. Real estate is a fun ride, I hope you enjoy it!
[email protected]978-710-8611
Candor Realty4.760 Reviews
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Hieu Bui
OP
Rental Property Investor · Athens, GA · Member since 2019 · 28 posts · 13 votes
7y
@Jonathan Bombaci Thank you for your kind words. Do the contractors give you a free estimate if you have the property under contract? Or you still have to pay them for the estimate?
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Jonathan BombaciBusiness Member
Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
7y
That Depends on how busy they are and how busy your market is. If you have it under contract and tell them You’ll be having the work done in the next 2 months most of the time it’s a free estimate since they’re trying to win the business. I normally try not to tell them I’m getting 2-3 quotes until I meet them at the property.
[email protected]978-710-8611
Candor Realty4.760 Reviews
Website View Page
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Bill Buzzell
Perry, GA · Member since 2016 · 46 posts · 21 votes
7y
The right contractor could do it for close to that if your prices listed are labor only. Some points I would be considering:
1) The interior painting looks a little low for all the work involved.
2) The roof looks like it will need some new sheeting in spots, at least as I can see staining on the ceilings from roof leaks. Expect to spend some more. Perhaps $7500 materials included.
3) The video is hard to make out. Does the soffit and fascia repair need doing ALL around the house or is the front ok. How much siding are we talking? Just the low spots around the door? Hard to make out how much is involved.
4) How much of the cost for flooring is materials? Labor should run no more than about $1200, maybe $1500.
A better quality video is really needed. I could give you a pretty solid estimate if I could see things better on the items you listed.
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Hieu Bui
OP
Rental Property Investor · Athens, GA · Member since 2019 · 28 posts · 13 votes
7y
@Bill Buzzell Thanks. This video is from the agent. I’ll get a better video next time I see the property.
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Bill Buzzell
Perry, GA · Member since 2016 · 46 posts · 21 votes
7y
Have you considered a metal roof? These are often the way to go. They are much easier to install and can usually be done by one man. The cost is about the same for materials.
I work with a guy that can install that roof by himself in less than a week. No need for a van load of guys to have to knock it out in a day. You don't tear off the old roof except to get at the sheeting where necessary. You go metal right over the shingles.
I would think they add to the appraised value as well, am I right? For a long term investment metal roofing is a no brainer. Do it once and you are done forever.
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Sam Shueh
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
7y
I suspect you have termite, and mold exposures. The exterior beams, siding need a do over. You need to a certificate that there is no mold as the tenants can easily go after compensation-a valid reason to refuse paying rent. A good rule of thumb is double down what you think you like to spend and make adjustment later. I also suspect there are no drainage provided. Cutting back vegetation etc.
The home probably got more deferred maintenance, water damage evident even in this video. Good luck.
0 Reply
Audrey X.
Rental Property Investor · Atlanta, GA · Member since 2018 · 41 posts · 29 votes
7y
@Hieu Bui
I re-did the siding on a townhouse rental of mine 5 years ago in Marietta, GA, three sides only and it was around $10,000. For yours, definitely budget around $10,000 minimum especially with water issues. Inside looks like you may need to redo some drywall before you can paint. What you're budgeting is definitely low. Triple what you estimated like what others said. There will be hidden issues.
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Tanya Rooney
Flipper/Rehabber · Roseville, MN · Member since 2018 · 73 posts · 38 votes
7y
@Hieu Bui
Some things you can do a little more digging for estimating on your own. Say flooring, go to your local Home Depot and find a flooring you would like to use then do the materials estimate like that (remember to add 10% to your square footage for pieces that will need to get cut). Big box stores also typically have contractors they refer out or a list somewhere. You can call one of them and ask for a cost per square foot for install of the floor you picked out. jay’s book is awesome but it’s pretty general so you may need to be adding to it for your specific market. Asking a contractor for some costs per square foot is a good idea. In my market the paint estimates you have are quite low. Painters are pretty good about giving estimates.
It doesn’t typically matter if you own the property or not when asking for bids but it’s respectful to tell them if you don’t own it. If you don’t they are less likely to go out there because of how busy they likely are. You can offer to pay though which is a good idea. Start networking in your market to find partners that can help out with your first one is some way or form. I like itemed out a budget and then sent to a contractor with pictures and he was generous enough to come back to me and tell me where I may be off.
You missed appliances like someone above said, you should assume there is some other work that may be needed and a contingency should always be in your estimate. Sometimes 5-10% is safe but if it’s your first deal you want to bump that up more unless you have cushion in your numbers or in your own bank account.
Best of luck!! :)
0 Reply
John Barrows
Real Estate Broker · Auburn, WA · Member since 2015 · 151 posts · 106 votes
7y
@Hieu Bui
Your numbers are a bit off... roof itself will be close to $10k.. you have soffit rot and that might be rotted inside into the trusses... yikes..
I saw ceilings that were leaking as well...
Personally, I’d get a waste contractor bin.. remove all the crap, take a log screwdriver and then start poking around... you can see what’s not visible...
Once complete, do a materials cost list. Then times that by 3 or 4 times and then you’ll be close. For stuff you’ll be doing add that in too.. better to have worst case then over budget and no money left over to finish..
Good luck with the remodel...
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Adam Abdel-Hafez
Contractor · Atlanta, GA · Member since 2015 · 236 posts · 91 votes
7y
@Hieu Bui I agree with others that looks like you are missing a lot of items on the scope of work and the items you have estimated are 20-40% off.
0 Reply
Hieu Bui
OP
Rental Property Investor · Athens, GA · Member since 2019 · 28 posts · 13 votes
7y
@Adam Abdel-Hafez Thank you and every one else that were responding. If the rehab cost is less than 30k, then the deal makes sense to me (11% CoC ROI). However, seems like the rehab would be much more than that. For my first deal, I think I'll pass on this.
0 Reply
Adam Mitchell
Rental Property Investor · Richardson, TX · Member since 2019 · 120 posts · 82 votes
7y
@Hieu Bui
I agree with most of the comments but your rehab will be different depending on your plan to either rent it or sell it. If your selling it then by all means everything needs to be done, if your renting it you you may not need to update everything. For example if we are remodeling for a rental we paint all interiors one color...white. If we are remodeling for resale we usually do the trim and doors white and the walls something else. Either way take a contractor with you to look at properties before you buy. If you don’t have a contractor yet...put the brakes on your whole operation until you have a great contractor and a backup as well. Having your contractor in line is Hugely important to your success.
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Patrick Culleton
Investor · GA · Member since 2018 · 20 posts · 11 votes
7y

I think your estimates are low, as well. I would put it under contract estimating closer to $35k rehab cost and then adjust post inspection and after getting bids in. Do you know any contractors in the area already?
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Hieu Bui
OP
Rental Property Investor · Athens, GA · Member since 2019 · 28 posts · 13 votes
7y
@Patrick Culleton Hey Patrick, thanks for the response. I do not have a trusted contractor. I guess the big items for this project is the roof replace and ceiling stain repaired. Do you have any referrals?
0 Reply
DeAndre Mason
Member since 2019 · 34 posts · 7 votes
1y
Quote from @Hieu Bui:

Can someone check my rehab estimate on this duplex?
https://youtu.be/7eoE9oaDEzM
This is a 2Br/1bd per side duplex, 1848 sqft.
The interior of one unit is very bad, but the other unit is fine. Each unit is 924 sqft.
From what I can see in the video, it needs new roof. The soffit, fascia, and some of the siding needs to be replaced. Exterior paint and interior paint. Vinyl Flooring. New vanity for bath room. Cleaning.
+Soffit and fascia + Siding replace: 3000
+Roof Replace: 5000
+Exterior Paint: 2500
+Interior Paint (1 unit): 1000
+Vinyl Flooring (1 unit): 2000
+Bathroom Vanity: 250
+Cleaning (1 unit): 200
Total Rehab Cost: ~14k
P/s: I'm in North East of Atlanta, GA

How much did it end up costing you, man?
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