How much are you paying per square foot these days???

Question

I was curious what other people are paying for a gut reno. Just quick math while analyzing deals. The last few projects that I've gotten estimates on, I can't seem to get below $100/square foot. Prices are going up everywhere obviously but is anyone doing these for $90/sq ft or less anymore? I should add that I flip houses and use generally nicer finishes.

Jeffrey Sommer · Answer

Thanks everyone, that's about where I'm landing as well. We have started to focus more on high ARV properties as opposed to the entry level price point. This has been getting us quotes in the $100-$110 range.

Vijay Friedman · Answer

@Jeffrey Sommer$100/sf can get there pretty quickly on a true gut rehab depending on the scope. I’d break it down by major systems and finishes rather than rely too heavily on one $/sf number — especially when underwriting a flip, since a few big-ticket items can change the rehab budget fast.

Greg Kasmer · Answer

@Jeffrey Sommer - I had a single family house burn down and doing the rebuild now. It's a square footage of 1,152 and I got quotes anywhere from $95k - $145k for the rebuild, so I'm seeing a wide range. Based on what I've seen I think ~$100/sq. ft is the estimate I would use moving forward... I don't think $90 sq. ft would work anymore. My GC also commented this week that the prices of lumber, cabinets, and countertops are likely going up in a few months as well. Good Luck!

Stuart Udis · Answer

It is very difficult to stay under $100 per square foot for a full gut rehab of a single family home in Philadelphia if you are doing things correctly, including using licensed and insured subcontractors and general contractors and pulling permits. Back in 2012, I was completing permitted gut rehabs of 1,200 square foot homes for $45,000 to $50,000. MEP costs are where I have seen the biggest increases, making it difficult to stay below $100 per square foot. The better opportunities today are often in higher end markets, where many of these costs are absorbed more easily. Might be able to get under $100/ft on a larger home that doesn't have crazy windows or roof work if its not high end because its still one kitchen, probably 2.5 baths etc. etc. so the larger line items don't change much.

Most of my projects are mixed use rehabs at this point and feel the pricing pressures there as well but my main residential interest at this point is building ground up where I can sell for $400/ft+ to account for todays construction costs.

Chris Seveney · Answer

What size square footage these properties ? For 1000-1500 we are seeing 90-110/sf in the Midatlantic /northeast and in some of the southern states it's $70+