Read J Scott's book on estimating rehab costs and was inspired to take his sheet (Thanks J) and put my touches on it. Enjoy!
Also interested in crowd-sourcing feedback on the sheet itself and on the estimation process in general. By my count there are ~120 lines of input per room, just feels clunky. It seems like you'd be walking through a property for hours to actually get all this info written down.
Anyone with experience here care to share their tips and tricks? Any 80/20 rules developed here?
@Thomas Stanley it’s a bit dense for sure, but all the important things are there
@Account Closed I agree its really dense - thanks for having a look.
@Thomas Stanley feel free to leave this here but this forum is mainly for the BRRRR method and strategy. Meaning, you might get some answers here....but I would bet that you would get a TON of responses in the "Rehab" forum. So feel free to post there too if you would like. Some general feedback here:
Knowing how to calculate rehab is really important for most real estate investors. Whether you wholesale, flip, or even "buy and hold" knowing how to calculate rehab quickly and effectively is very important. And along those lines...knowing your market for these costs is also important. For example, if someone charged $1000 to purchase a replace a hot water heater in Texas, they might get shot. That's WAY overpriced for us....but it might be 100% accurate for Boston. We don't have furnaces, heat pumps, and the like. But we ALWAYS seem to have foundation issues. So each market will be a little different and so will the costs. I would highly encourage you to have a local contractor review this with you. It's not important to be 100% accurate....but it is important to be close and to have a cost associated with an item. Even if you are off some, just account for it and then include a 10% BUFFER at the end of your rehab bid. Taking down a wall usually leads to more discoveries. The higher your rehab budgets, the more I might add to the Buffer. So a $60k budget for me might get an 11% BUFFER. A $10k budget, I would leave at 10%. Just for examples.
Anyway, I hope that some of this helps in some way. Thanks for posting!
@Thomas Stanley . You can develop your expertise without even leaving your home.
Go into one of your secondary bedrooms and determine what you most likely will need to remove / replace. For instances, measure the baseboards to determine how many linear feet of baseboard you would need to replace. Typical secondary bedrooms are 10 X 11 or thereabouts. To ensure you have all covered use 12 X 12 as a Standard. So you'll need 48 linear Feet of baseboard to replace all baseboards in a secondary bedroom. Don't forget to measure the closet areas. Obviously a double bi-fold door closet will have less baseboard than a walk-in but use a 5 X 6 as your standard, so need 22 LF of baseboard in a closet. 48 + 22 = 70 LF. Round it up to 75 for waste. Find the price for baseboards you would prefer to use at home store & multiply times linear feet gives you material cost for baseboards.
Count the doors, door hardware, light fixtures, flooring, fans, windows, etc, and you can develop a Price for a Secondary Bedroom for estimating purposes. For example - let's say $1000 per bedroom, and you have 3 secondary bedrooms, you can easily see $3,000.
Use the same method for kitchen, living areas, etc., and soon you be competent to walk though and guessimate off the top of your educated noggin.
This process will also make you more cognizant of the various components in each area of the home.