Best way to estimate rehabs on wholesale properties.
Member since 2021 · 13 posts · 1 vote
Best way to estimate rehabs on wholesale properties.
Most Popular Reply
David RobertsonBusiness Member
Flipper/Rehabber · Kansas City, MO · Member since 2010 · 758 posts · 780 votesHey Justin,
Learning to estimate rehab costs is a process that takes time and experience. Here is the process that I recommend for learning how to estimate rehab costs:
#1 Read 'The Book on Estimating Rehab Costs'
First, you need to build a foundational knowledge of construction, inspecting properties and putting together a detailed SOW.
JScott's 'The Book on Estimating Rehab Costs' is a great resource for new rehabbers to learn how to Estimate Repair Costs on 25 common rehab repairs.
https://www.biggerpockets.com/store/the-complete-g...
#2 Explore Lowes and Home Depot to Learn About Material Pricing
Take a tour through Lowes and Home Depot (or their websites) and look at finishes materials and fixtures that you will consider using in your rehab projects. This will help you get a better idea of what tile, hardwood, carpet, plumbing fixtures and light fixtures costs for your rehabs.
#3 Contact Local Contractors for Labor Pricing / Hire a GC to Consult
Call local Subcontractors and get budget pricing for common repairs on your typical rehab project.
For example, call a roofer and ask what their average cost per Square of Architectural Asphalt Shingle Roofing would be on a 1,500 sf house, with a 6/12 pitch.
Note: Some contractors will be reluctant to share pricing without seeing the property, but tell them you are just looking for a rough budget number you can use on future projects.
You can also pay a General Contractor a consulting fee of a couple of hundred dollars (per house) to walkthrough a few properties with you and provide a detailed estimate of prices that you can use as your 'menu for future projects.
#4 Compile Your Prices into a Spreadsheet or Estimating Software
Once you start to get a better understanding of Labor and Material costs you will want to store this data into a spreadsheet or software that you can use to help you streamline the estimating process.
The Book on Estimating Rehab Costs comes with a spreadsheet that you can use to help you populate your own database of labor pricing and material pricing. Or you can download my estimating templates I have in my Biggerpockets fileplace:
Detailed Estimating Spreadsheet
There are other Estimating Softwares available as well which can help you manage the Estimating process as well...
#5 Practice, Practice, Practice
Walkthrough potential rehab properties (or find properties virtually online) and practice creating detailed scopes of work, quantifying repairs and estimating rehab costs for the projects.
5 Replies
- 5yCurt DavisBusiness MemberFlipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votesFind a local contractor, invite and pay for their lunch and ask them to give you their formula to estimate renovations.
Good luck
Curt Davis - KAIZEN Realty538 Reviews - Member since 2021 · 13 posts · 1 vote5y
Originally posted by @Curt Davis:
Find a local contractor, invite and pay for their lunch and ask them to give you their formula to estimate renovations.
Good luckThank you so much that is an amazing idea!! I will be using this for sure!
- Title Representative · Irvine, CA · Member since 2017 · 874 posts · 519 votes5y
@Justin Sawyer BiggerPockets has a book in their bookstore that is strictly on that subject, and I think it breaks it down by state. We also use Rehab Estimator Pro (google it for the website). And then there is always this basic metric, if you want to come up with a ballpark: $10/ft for light renovation, $20/ft for medium renovation, and $30/ft for heavy renovation - not a totally precise way of figuring the repair amount, but a good back-of-the-napkin method.
- 5yDavid RobertsonBusiness MemberFlipper/Rehabber · Kansas City, MO · Member since 2010 · 758 posts · 780 votes
Hey Justin,
Learning to estimate rehab costs is a process that takes time and experience. Here is the process that I recommend for learning how to estimate rehab costs:
#1 Read 'The Book on Estimating Rehab Costs'
First, you need to build a foundational knowledge of construction, inspecting properties and putting together a detailed SOW.
JScott's 'The Book on Estimating Rehab Costs' is a great resource for new rehabbers to learn how to Estimate Repair Costs on 25 common rehab repairs.
https://www.biggerpockets.com/store/the-complete-g...
#2 Explore Lowes and Home Depot to Learn About Material Pricing
Take a tour through Lowes and Home Depot (or their websites) and look at finishes materials and fixtures that you will consider using in your rehab projects. This will help you get a better idea of what tile, hardwood, carpet, plumbing fixtures and light fixtures costs for your rehabs.
#3 Contact Local Contractors for Labor Pricing / Hire a GC to Consult
Call local Subcontractors and get budget pricing for common repairs on your typical rehab project.
For example, call a roofer and ask what their average cost per Square of Architectural Asphalt Shingle Roofing would be on a 1,500 sf house, with a 6/12 pitch.
Note: Some contractors will be reluctant to share pricing without seeing the property, but tell them you are just looking for a rough budget number you can use on future projects.
You can also pay a General Contractor a consulting fee of a couple of hundred dollars (per house) to walkthrough a few properties with you and provide a detailed estimate of prices that you can use as your 'menu for future projects.
#4 Compile Your Prices into a Spreadsheet or Estimating Software
Once you start to get a better understanding of Labor and Material costs you will want to store this data into a spreadsheet or software that you can use to help you streamline the estimating process.
The Book on Estimating Rehab Costs comes with a spreadsheet that you can use to help you populate your own database of labor pricing and material pricing. Or you can download my estimating templates I have in my Biggerpockets fileplace:
Detailed Estimating Spreadsheet
There are other Estimating Softwares available as well which can help you manage the Estimating process as well...
#5 Practice, Practice, Practice
Walkthrough potential rehab properties (or find properties virtually online) and practice creating detailed scopes of work, quantifying repairs and estimating rehab costs for the projects.
- Member since 2021 · 13 posts · 1 vote5y
Originally posted by @David Robertson:
Hey Justin,
Learning to estimate rehab costs is a process that takes time and experience. Here is the process that I recommend for learning how to estimate rehab costs:
#1 Read 'The Book on Estimating Rehab Costs'
First, you need to build a foundational knowledge of construction, inspecting properties and putting together a detailed SOW.
JScott's 'The Book on Estimating Rehab Costs' is a great resource for new rehabbers to learn how to Estimate Repair Costs on 25 common rehab repairs.
https://www.biggerpockets.com/store/the-complete-g...
#2 Explore Lowes and Home Depot to Learn About Material Pricing
Take a tour through Lowes and Home Depot (or their websites) and look at finishes materials and fixtures that you will consider using in your rehab projects. This will help you get a better idea of what tile, hardwood, carpet, plumbing fixtures and light fixtures costs for your rehabs.
#3 Contact Local Contractors for Labor Pricing / Hire a GC to Consult
Call local Subcontractors and get budget pricing for common repairs on your typical rehab project.
For example, call a roofer and ask what their average cost per Square of Architectural Asphalt Shingle Roofing would be on a 1,500 sf house, with a 6/12 pitch.
Note: Some contractors will be reluctant to share pricing without seeing the property, but tell them you are just looking for a rough budget number you can use on future projects.
You can also pay a General Contractor a consulting fee of a couple of hundred dollars (per house) to walkthrough a few properties with you and provide a detailed estimate of prices that you can use as your 'menu for future projects.
#4 Compile Your Prices into a Spreadsheet or Estimating Software
Once you start to get a better understanding of Labor and Material costs you will want to store this data into a spreadsheet or software that you can use to help you streamline the estimating process.
The Book on Estimating Rehab Costs comes with a spreadsheet that you can use to help you populate your own database of labor pricing and material pricing. Or you can download my estimating templates I have in my Biggerpockets fileplace:
Detailed Estimating Spreadsheet
There are other Estimating Softwares available as well which can help you manage the Estimating process as well...
#5 Practice, Practice, Practice
Walkthrough potential rehab properties (or find properties virtually online) and practice creating detailed scopes of work, quantifying repairs and estimating rehab costs for the projects.
This is amazing information! I can’t thank you enough for your detailed reply, thank you so much!!
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