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Updated almost 5 years ago on . Most recent reply
Construction Costs
Hi All,
So this is my first post as an active member. I cant describe how excited I am to begin my career in real estate investing! I sincerely thank everyone who responds in advance. This is an amazing community.
Down to business:
I currently live in Manhattan NY and am looking at investing properties in the five boroughs and Westchester. One area that is particularly interesting is downtown Yonkers. For those of you that can, I suggest you make the trip. It is quickly turning into a nicer White Plains on the water.
I found this great building right in the heart of all the action and am seriously considering trying to buy it. My main obstacle is the fact that the place will need to be completely gutted and redone in order to fetch the prices needed.
So how do you estimate the cost of construction? My mentor says that I need to call an architect but that they charge between $5,000-$10,000. While I could certainly afford that for this building, if the numbers don't end up working I can't pay that kind of money consistently.
Again thank you in advance, and if anybody in NYC wants to meet for coffee or lunch feel free to let me know.
Best,
Jack
Most Popular Reply
@John Duclos I would seriously consider getting a new mentor if this is the advice that he/she is giving you. You shouldn't spend a dime on an architect until you're ready to go forward with a project and that you should be able to determine quite easily on your own with a tape measure and a calculator.
If you're doing a gut rehab in NYC or the area you can generally figure out costs just on a per foot basis. You just need to interview a few licensed contractors and get examples of levels of work and depending upon the level you can figure out a rough estimate on costs.
I highly recommend you check out J Scott's two books he wrote for BiggerPockets. Just click on the link.
Also it would be great if you can join us for a Meetup in Manhattan in May. You'll be able to network with other BP members and get your questions answered.