All Forum Posts by: Ronald Ty

Ronald Ty has started 5 posts and replied 68 times.

The rehab estimator on BP seems to have issues with pricing especially when you select NO CONTRACTOR. Not sure if there is a glitch with the program that is being corrected or if it has been that way as we do not use it. The program does not appear to give you the flexibility to add / remove specifics for projects or rooms. After you have done a few renovations, you will have a feel for what a project or entire room will cost and get pretty close in a ballpark when you do a walk-through with a notebook or tablet. These programs that are intended to estimate rehab costs are often using outdated material and labor costs or are overly restrictive in how the rooms are grouped (value, quality or luxury). Actually some of the YouTube videos that cover estimating rehabs are more accurate than what the programs try to do. We tried a spreadsheet (Excel) type tool when we got started and spent too much time trying to fit numbers and not enough time doing deals. See if you can connect with a flipper or someone doing rehabs at your local REIG and see what they do when they look at a property to size up the deal. I have seen that investors that try to use them especially initially get tied up in trying to fine tune the numbers and wind up missing the deal.

Thanks for your reply! You’re absolutely right about spending too much time on spreadsheets. I’ll be getting myself out there and speaking with flippers very soon

There's nothing wrong with using excel sheets especially early. Actually, you should always do this so you are able to estimate future rehabs budgets (that's what I do).

Ignore these BP, etc estimators. They are garbage. Take an excel sheet and put 1 side for labor and other side for materials. It simplifies a big project. Instead of budgeting per room (confusing and not accurate) just label it by flooring, cabinets, plumbing, hvac, etc. You will find these will get you more accurate.

And I gave found, I am always under my rehab estimate. Prices go up and things pop up during rehabs. Plus, building department government nuisance nonsense. Good luck!

1 Vote

Upstate New York, New York

Add another 2k to this. The garage floor is unlevel and needs to be mud jacked on the left side. Garage door won't be level.

stuff they don't show you on those flippjg shows. It's so easy! Not !

1 Vote

Quote from @Carlton B.:

Everyone does there rehabs different depending on your buyers expectations, but you could make up some of the cost with materials like chopping block counters and maybe some of the plumbing fixture.

I guess I could, however, this is a 425k 1600sq foot ranch home with a 1 car garage. Would save some $ but don't think I'd get an offer. Competition is all quartz and plumbing fixtures aren't too crazy expensive. It's a 107k rehab. I'm prolly not going to save a ton here. I've found when I cut corners, especially on labor, then that's when it gets expensive. Got to hire another person to rip it out and start all over again. So double the labor and material then.

2 Votes

I guess where I screwed up are my numbers. Thought 90k rehab and it is looking like 110k. It was a wholesale deal so I missed some stuff and I haven't done a rehab in a few years so prices went up.

hvac 6500, wood floors 6k, drywall 5k. Electric 4500, permits 1200, power wash siding 500, cabinets 8500, appliances 3700, quartz 5800, insulate 450, tile 6k, demo/dumpsters 6k, mold/vapor barrier crawlspace 2k, doors%closets 3k, subfloor repair 1800, plumbing/fixtures 14k, exterior window/door/fascia replacement 2k, knobs/shelves 3k, replace 1 car garage door and motor 2k, staging/marketing/stamps 500, framing/remove wall/LVL beam/architect 6300, trim/crown/casing 2k, reseal driveway 600, mudjack 1500, paint interior/exterior 7k, maid, etc 1k, demo concrete side patio and seed with dumpster 1700, landscape 1k, replace 8 windows and sliding patio, shower glass door 5500

total rehab 107k

2 Votes

i use a flat fee agent so pay them $250 plus 2% to the sellers agent.

your question regarding the return you shoot for is a loaded one. some will NOT use their own $ so the return can be higher (leverage).

most shoot for 15%. honestly, it's better to just put your $ into a roth ira & invest it in the 500 index fund. it will grow tax free & you won't pay the crazy high taxes (self employment taxes will cream you) on a flip.

most shoot for 15% and it winds up being lower when all is said and done.

1 Vote

i am having trouble competing with other flippers. i try to do things the right way (pull permits) & use contractors/hvac/plumbing/electricians who, i feel, give me the best bang for the buck. and we all know the cost of things, and labor, have risen dramatically lately.

i pay cash for my homes and hit the sales price i anticipated beforehand.

the problem i am having is getting my rehab numbers in line. i feel other investors are doing rentals or doing some/all the work themselves and/or not pulling permits.

i should also mention, i do not need to flip. i can live off the returns i get in my bond/stock portfolio (w/ a lot less taxes paid). however, i like to flip 1x/year to keep me from getting bored and get that satisfaction from "working" (i retired 4 years ago).

and no, i am not interested in doing rentals. :)

4 Votes

Hi carsen! I live in st charles and have done numerous flips and some rentals. Take care!

0 Votes

Hi carsen! I live in st charles and have done numerous flips and some rentals. Can show you some of my rehabs budgets so you can see a real world project. Take care!

0 Votes

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All Forum Posts by: Ronald Ty

Ronald Ty has started 5 posts and replied 68 times.

Post: using the rehab calculator

Post: flip rehabs/returns - how do i compete?

Post: flip rehabs/returns - how do i compete?

Post: flip rehabs/returns - how do i compete?

Post: What is the average return you are making on flips ?

Post: flip rehabs/returns - how do i compete?

Post: New Teen Real-Estate Investor!

Post: New Teen Real-Estate Investor!