Rental Property Investor · New York, NY · Member since 2019 · 48 posts · 9 votes
Hey All,
I'm finally ready to get serious about investing in real estate. I have saved up enough cash and networked with some potential partners, if need be. My game plan is to purchase a property that needs to be gut rehabbed then get it ready to either fix and flip or fix and rent out. I live in Brooklyn, but I have been keeping an eye on Philly for a while. I have a general idea of the neighborhoods that I want to target, but I do not have a strong sense of what it would take to gut rehab a property in Philly. Without that knowledge, I will not know what is a good deal despite the powerful tools that BP has. Could anyone who has done such a deal give me a break down of how much it cost to go from a shell to a fixed-up property ready to sell or rent? I'm not shooting for a high-end build-out, more so on the efficiency side of things. I would also appreciate any suggestions you may have for contractors.
Real Estate Agent · Philadelphia, PA · Member since 2018 · 428 posts · 484 votes
6y
Hey Od! So this is a pretty loaded question just because a full gut really varies from neighborhood to neighborhood. Your finishes depend on if you are finishing the basement, if you have to add central AC, HW vs carpet/laminate, etc.
Here is a standard for 900-1200 sqft row homes in Philly depending on the neighborhood and assuming nothing is wrong with the foundation:
South Philly/West Philly West of 52nd Street: 75-85k (contingent upon underpinning basement which is big expense)
-Complete gut, redo electric and plumbing, dig the basement, redo everything, Central AC, turn a 3/1 into a 3/2 or 2/2 w/ a master suite higher-end finishes, touch facade.
Germantown Close to Germantown Ave/ Cobbs Creek/ West Oak Lane Close to Cheltenham / Better pockets of Olney: 60-70k
-same as above but you do not necessarily have to underpin the basement. You are saving on appliance quality, still doing stainless steel and stone countertops but maybe not quartz or Viking fridges. Add a half bath on the first floor or basement
SW Philly, North Philly in 19140, West Philly between Lancaster and Market: 50-60k
-Laminate floors, central AC option, finished basement optional, carpet upstairs, open up kitchen, lowest end granite or high-end Formica.
THESE CAN VARY FROM CONTRACTOR TO CONTRACTOR AND IS NOT SET IN STONE. These are generalizations from the couple dozen investors I have spoken to on what it costs them once they rehab the properties I have sold them. Hope this helps!
Real Estate Agent · Philadelphia, PA · Member since 2018 · 428 posts · 484 votes
6y
Hey Od! So this is a pretty loaded question just because a full gut really varies from neighborhood to neighborhood. Your finishes depend on if you are finishing the basement, if you have to add central AC, HW vs carpet/laminate, etc.
Here is a standard for 900-1200 sqft row homes in Philly depending on the neighborhood and assuming nothing is wrong with the foundation:
South Philly/West Philly West of 52nd Street: 75-85k (contingent upon underpinning basement which is big expense)
-Complete gut, redo electric and plumbing, dig the basement, redo everything, Central AC, turn a 3/1 into a 3/2 or 2/2 w/ a master suite higher-end finishes, touch facade.
Germantown Close to Germantown Ave/ Cobbs Creek/ West Oak Lane Close to Cheltenham / Better pockets of Olney: 60-70k
-same as above but you do not necessarily have to underpin the basement. You are saving on appliance quality, still doing stainless steel and stone countertops but maybe not quartz or Viking fridges. Add a half bath on the first floor or basement
SW Philly, North Philly in 19140, West Philly between Lancaster and Market: 50-60k
-Laminate floors, central AC option, finished basement optional, carpet upstairs, open up kitchen, lowest end granite or high-end Formica.
THESE CAN VARY FROM CONTRACTOR TO CONTRACTOR AND IS NOT SET IN STONE. These are generalizations from the couple dozen investors I have spoken to on what it costs them once they rehab the properties I have sold them. Hope this helps!
Banker · Philadelphia · Member since 2009 · 2k+ posts · 629 votes
6y
Hi @Od Ntuk would highly suggest going into a rehab in the Philly market. would consult with a project manager. they baby sit and facilitate the bidding process. too many bad rehab contractors and self proclaimed experts arouns. let me know if you have any questions.
regards
joe scorese
Contractor · Philadelphia, PA · Member since 2016 · 10 posts · 9 votes
6y
Hey @Od Ntuk I'm a project manger as well as an owner of a construction company. I am a 203k specialized contractor that advises in restoration and rehabilitation of single family homes in the Philadelphia area. I may be of help coming up with a strategy to purchase properties in the area as well as creating an exit strategy for any properties you may currently own. To speak from experience... to be honest with you a general neighborhood of price for a full rehab is $75/sq ft. depending on materials it could go up or down from there. I come up with customized price quotes for clients based on budget. I'm also familiar with different financing options for first time home buyers as well as investors. Contractors just want to get paid... project managers make sure the project is completed and everyone gets paid.