Estimating Rehab costs?

Question

Hey everyone,

I would like to know me being an inexperienced rehabber; how can I estimate rehab costs? This is my next step in my Brrrrr strategy. Any books you recommend (like estimating rehab cost by J.Scott) or software that would help so I can feel safer making qualifying offers? Maybe a generalization on how much a kitchen costs or bathroom obviously it depends on the quality of material, but I’m just looking for a generalized estimate to get me to make an offer

Chad Duncan · Answer

As a conservative estimate, double the cost you think it will be and double the timeline while doing a quick proforma. A good contractor will help you figure out more accurate costs for your detailed projections. Talk to a property manager on what level of renovations you should do, that way you aren't over renovating. Doing these can help you create a detailed cash flow projection based on estimates for your specific property.

Cody Neumann · Answer

@Allen McGlashing

Pay a GC to go through a few houses with you and give you an idea on price. It takes time and practice to familiarize yourself with the costs.

Allen McGlashing · Answer

@Sean David Gibson I am doing an out-of-state deal so I was hoping to just get the pictures from my agent first then budget for repairs on their opinion and my thoughts on the pictures. Maybe like a general idea like a kitchen would cost around $10k and bathroom around $6k. I guess what I could do is make an offer and pay a GC to go in with the inspector and estimate a rehab and negotiate from there.

Sean David Gibson · Answer

Following. . . I know of some that have a spreadsheet with average estimated costs for certain rehab costs in their area.  When they walk through a property they carry this list around with them.  I believe they have acquired this through experience and talking with contractors, mentors, and just trial and error.

Caleb Brown · Answer

GC or a mentor. It comes from experience. Each market is different and every home is.