Basic formula for estimating rehabs

Real Estate Agent · Charleston · Member since 2019 · 10 posts · 6 votes

Hey there team. Wondering if there is a basic formula out there for estimating rehabs (e.g. bathroom rehab generally cost ??, kitchen rehab generally cost ?? ). Looking for a baseline for quick initial rehab estimations understanding that I'll need to do a more comprehensive estimation the deeper we get into running numbers. Is there a cheat sheet somewhere? Help? Thanks!

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Ko KashiwagiPro Member

Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes

Hi Paul,

Rehab costs vary a lot depending on the location. A floor rehab in Los Angeles will be different than a floor rehab in Cleveland. For ballpark numbers like this, it's probably best to contract contractors and flippers in the area. With that being said, I'm attaching a page I read on a book for reference.

310-848-9776

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Ko KashiwagiPro Member
Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
2y
Hi Paul,
Rehab costs vary a lot depending on the location. A floor rehab in Los Angeles will be different than a floor rehab in Cleveland. For ballpark numbers like this, it's probably best to contract contractors and flippers in the area. With that being said, I'm attaching a page I read on a book for reference.
310-848-9776
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Paul Baldwin
OP
Real Estate Agent · Charleston · Member since 2019 · 10 posts · 6 votes
2y
Super helpful. Also picking up the book recommended in other post - https://www.amazon.com/Book-Estimating-Rehab-Costs-Renovatio...
Thank you Ko!
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Patrick Roberts
Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
2y
It can vary widely based on just the local area. An identical rehab will cost much less in Summerville than it will on the Peninsula. Even then, it will vary based on the quality/finishes you're targeting. Networking with contractors and investors who have recently completed rehabs similar to what you're targeting is probably the best way to stay on top of this. Another tactic is pricing out current materials costs and then trying to assess labor separately where possible. This isn't always as simple as it sounds, but could provide some additional insight. Poke around enough and you'll get a feel for the trend/range. REI Central (tomorrow night) is a great place to talk to other investors about this.
With how volatile construction costs have been for the past two years, this part of the process as become much tougher.
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Paul Baldwin
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Real Estate Agent · Charleston · Member since 2019 · 10 posts · 6 votes
2y
I'll be there tomorrow night. Very helpful Patrick. Thank you.
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Patrick Roberts
Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
2y
Quote from @Paul Baldwin:

I'll be there tomorrow night. Very helpful Patrick. Thank you.

Nice! Wasn't sure if you were familiar with the meetup or not. See you there!
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
@Paul Baldwin
Really no easy way. As you have exterior and interior items where one could be ok and other not or both need work. Spending $20k on exterior if windows roof and painting are needed will eat up costs pretty fast
Best to itemize what needs to be done and then determine a rough estimated cost
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Account Closed
Realtor · Cleveland, OH · Member since 2023 · 340 posts · 215 votes
2y
Hi, all this is great information. As an Ohio Realtor, if you are interested in investing in Ohio real estate this is the place you want to be especially, when it comes to investing in real estate. Please contact me with any questions or concerns. Thanks!
Regina Blake-Ohio Realtor
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
There's no 'cheat sheet' for this. You'll only get into trouble by trying to guess on your own.
Best thing to do is to hire a good General Contractor that has (preferably) decades of experience - no newbies or Handymen, Etc...
They should be able to walk a property (< 1 hr) and give you a rough, but pretty close, price. They know what things cost and how much their subs charge.. It'll be the best money you ever spent.
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Jake BakerBusiness Member
Flipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 696 votes
2y
@Paul Baldwin
Light Cosmetic ($40-$50 x Sq. Ft)

Medium Cosmetic ($45-$55 x Sq. Ft)

Heavy Cosmetic ($55-$65 x Sq. Ft)

Studs Down ($80-90 x Sq. Ft)

Luxury ($150-200 x Sq. Ft)

The first thing I look at before viewing a property is the permit history. This can tell me a lot about the age of the plumbing, roof, HVAC, etc before actually walking it.
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Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
2y
Quote from @Paul Baldwin:

Hey there team. Wondering if there is a basic formula out there for estimating rehabs (e.g. bathroom rehab generally cost ??, kitchen rehab generally cost ?? ). Looking for a baseline for quick initial rehab estimations understanding that I'll need to do a more comprehensive estimation the deeper we get into running numbers. Is there a cheat sheet somewhere? Help? Thanks!

bathroom rehab depends on plumbing but i expect min. 3K for lighter one.
kitchen rehab is about 2-3k ; the cabinet is not expensive.
that's labour and materials.
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Jonathan KlemmBusiness Member
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Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
2y
@Paul Baldwin - I have found there are two ways to understand/learn something....find someone who already knows or teach/learn yourself...the later works, but just takes longer and often has room for more errors.
There's no true cheat sheet until you have done enough projects in your specific area!
Here is a matrix we put together for Chicago, but renovation is SO variable...
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