REHAB COST VS. VALUE ADDED

[Karen Margrave]

Here's a link for Cost vs Value from Remodeling Magazine, thought some of you might be able to use it for general purposes.

http://www.remodeling.hw.net/remodeling-market-data/about-the-report.aspx/

[Jon Holdman]

These numbers aren't "rehab" numbers and don't apply, IMHO, to fix and flip type projects. These are for homeowner's who are improving their already-ok home. They're replacing a functional but outdated kitchen with a newer one. Or aluminum windows with new, more efficient vinyl ones. That's much different than taking a junker house and turning it into a nice, updated house.

An "average" bathroom remodel is projected at $16,600,

A "minor" kitchen remodel is $21,600, and a "major" kitchen is $58k.

Those are indeed reasonable retail prices for those sort of jobs. I paid close to that for my kitchen remodel some year before I really started doing real estate. Mine was certainly over and above "major" since we moved walls, doors, and windows and changed a lot of electric and plumbing. But I realize now the cost of that job was MUCH less than what I paid. Fix and flippers better be paying much closer to the cost of these jobs than the retail prices or they're not going to make any money.