Wholesalers/Rehabbers, Can You Estimate Rehab Costs (see photos)?

4 Replies

So I've been responding to many wholesale threads regarding underestimating rehab costs. I have also read many threads regarding most who can assess what a property may cost to rehab within minutes of viewing it. I thought it would be interesting to see what wholesalers/rehabbers (new & experienced) would estimate this cost to rehab if you only had these photos to assess.

Whether you are from Texas or out of state, it would be nice to get an idea of what anyone believes it could cost just by reviewing these photos. It would be a good exercise and possibly helpful to those who are new.

This house is located in Texas and is a 3/2 @ approximately 1,100 sqft. It was built in the early 1960's with an ARV of roughly $130K. We could get into what the maximum offer would be but I am more interested in what the cost of rehab could range for this home.

Let's keep this professional and hopefully you could point out what you notice in the pics or what you definitely feel you should replace or renew.

Let's have fun with this. And yes maybe this has been done before but again, this is an example we could use to tackle the issues with under estimating repairs. The rehab costs should reflect a typical cost. Not a DYI or your crew that has done over 100 rehabs for you. This is meant as an exercise to see what it may cost in your opinion if you were new to the area or business.

This will hopefully come from two view points, a wholesaler's and a investor/rehabber view point. 

Thanks in advance for your participation.

Your BP Family Member,
Big Henry


SEE PHOTOS BELOW (ZOOM IN):

Landscaping $1,000 - $1,500

Interior paint/sheetrock repair $1,500

Light fixtures $500

New kitchen counter tops and sink $750

New carpet in bedrooms and hallway and maybe living room $1,800

HVAC ? 

Water tank $600 if needing to be replaced

Reserve for plumbing, electrical and hvac servicing $1,500

Without knowing more I would guess around $10,000 bc there is always something that comes up you didnt know about.

Curt Davis, Real Estate Agent in TN (#00321765)

roof $6500

Hvac $4000 new

Paint $4500

Floors $3000

Inspection $300

Misc $2000

Originally posted by @Curt Davis:

Landscaping $1,000 - $1,500

New kitchen counter tops and sink $750

 So Curt, in your opinion, you would just update vs. renovate?

In regards to Kitchen, are you saying it would remain as is and not open up kitchen floor plan?

I do see you may want to do central air & heat... Am I reading that right? As we see it has window units and old time wall heaters.

Would you do anything different mentioned if it was a buy & hold vs. a flip?

Same questions apply to you Todd Davis...

Big Henry

this home to me looks like a normal fix and flip to an investor so opening up walls  is not worth it to me.  I did see the wall units and window ac but depending on location and price or rent might just make sure current system works otherwise your gonna update electrical and install hvac which will be expensive.   Looks like a small home. 

Curt Davis, Real Estate Agent in TN (#00321765)