Rehab cost estimating in the midwest in 2022

[Cody Lindstrom]

I am posting this with the intent to help new investors, like me, at BP understand where rehab costs are sitting in the midwest today, September 23rd, 2022.  

We are looking at a possible investment property in our area. This would be a VA financed, live in while we rehab, and sell after 1-2 year flip. Provided the economy doesnt go bust. hahaha there's not a defined name for this strategy, but the closest would be a House Hack Hybrid as we wont have a renter. We will use a HELOC on our primary home and possibly private lending for our reno.

The home is a 1950's home in a well sought after neighborhood.  I am meeting a contractor there today to get a walk through estimate. 2600sq total with a basement, so about 1600sq on the main level and about 1000sq down.  WE plan on a full rehab throughout the main floor (some wall movement) with some remodel down if the budget fits.  I expect majors like, roof & gutters, electrical and some plumbing.  There are cracks in the ceiling that concern me.  If we do a rough rough estimate at $35/sq, the reno would be around 56K for the upstairs.  The positive here is that the windows, air and furnace are updated.  Those are major expenses.  

I chose $35 a square from another individual that posted about his last three flips coming in at around $30-$35/sq.  I was going in at $25, which I heard from a BP podcast guest, but then i realized that it was an episode from a few years back.  I'm trying to listen to all 600 plus haha. good stuff.  I'll update on what the contractor says.  

Happy Investing.