Projecting rehab costs
Hi BP,
I'm a hopeful investor who is still learning a lot about REI. My latest quest is to figure out a quick and easy way to estimate rehab costs and ARV by just looking at the specs and pictures of a house online. Obviously, I know a lot could change when I get in the house with a contractor, but I'd like to figure out a way to decipher if the house is even worth pursuing in the first place.
In my research, I came across a flipper online who provided me the following chart. This flipper was a former construction worker who has flipped over 100 houses and swears by this chart for initial rehab costs. He is based out of Arizona and I am trying to figure out if these numbers would hold true is my area (Philadelphia and Delaware County) as well. Can anyone tell me, especially if you’re from the Philly area, if these numbers look about right?
Calculating Reno Budget
Light = carpet/paint
Medium = carpet/paint/kitchen/bath
Heavy = complete gut job
Square Feet
<1500 1500-2500 2500-350 3500-4500
LIGHT $10k $15k $25k $30k
MEDIUM $25k $35k $45k $55k
HEAVY $50k $75k $90k $100k