Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
3y
@Faith Importico hmmm, this is certainly a different answer depending on your market. Without the "Big 5" I have been using $14 per square foot for entry level homes, $18 per foot for mid level, and $21 for high end homes. This is just a general number....and I use one of those 3 based on the comps that I have in my subject area. Keep in mind that we don't have basements in my market and VERY few multi-family properties...so my math might be a little different than yours. I would strongly recommend connecting with other local real estate investors and lean on them with what they are doing. There are many real estate investor groups that meet locally in Philadelphia. Certainly visit and connect with those for best results.
Investor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
3y
$15k is the sweet spot. It’s easier to do if you can save cabinets and re-paint them, save vanities the same way, etc. If the tile is a style I don’t like, but, it’s not chipped, I save it, etc etc… the trick for me is to start with all major mechanical items: hvac, HWT, panel, and then add the roof… if all that checks out then the odds of a minimal rehab are even better!!!
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
3y
@Faith Importico hmmm, this is certainly a different answer depending on your market. Without the "Big 5" I have been using $14 per square foot for entry level homes, $18 per foot for mid level, and $21 for high end homes. This is just a general number....and I use one of those 3 based on the comps that I have in my subject area. Keep in mind that we don't have basements in my market and VERY few multi-family properties...so my math might be a little different than yours. I would strongly recommend connecting with other local real estate investors and lean on them with what they are doing. There are many real estate investor groups that meet locally in Philadelphia. Certainly visit and connect with those for best results.
@Faith Importico hmmm, this is certainly a different answer depending on your market. Without the "Big 5" I have been using $14 per square foot for entry level homes, $18 per foot for mid level, and $21 for high end homes. This is just a general number....and I use one of those 3 based on the comps that I have in my subject area. Keep in mind that we don't have basements in my market and VERY few multi-family properties...so my math might be a little different than yours. I would strongly recommend connecting with other local real estate investors and lean on them with what they are doing. There are many real estate investor groups that meet locally in Philadelphia. Certainly visit and connect with those for best results.
If we could rehab for $21 a square foot here in PA... WHEEEWWWWW lol. Very jealous. Things are closer to $100 a square foot here for a higher end rehab.
I have a wide range for how much rental grade rehabs cost. Where are you from, and how much are rental rehabs costing you and your team?
40-50k for properties under 250k with a 20-25% equity position is what I am seeing in my area. Now that the market is slower and people are limited on cash, I tend to buy the ugliest property on the market and we are doing very well in this environment. Rents are close to 1% with this approach and very insulated even if the market drops another 10-20%.