NYC construction costs

[Andres Baena]

Hello everyone,

I am looking to get a better handle on SFH remodeling costs in the boroughs and have heard multiple opinions as to how I should be estimating rehab costs. I want to get into foreclosure rehabbing and I'm not married to any borough. My team likes the idea of South East Queens because we know the markets and understand the buyers. Initially I was told that for a model I should be using a range of $30-$80 per sq ft based on location. Then I spoke to someone in the insurance business who recommended I should be north of $120 when rehabbing homes as certain unforeseen costs can arise such as asbestos, foundation issues, and a long eviction process which leads to longer holding costs. I have allocated in my model $10000 cash for keys and will most likely begin with only vacant properties. Anyone out here in the forums with similar experiences?