What goes into Rehab Costs?

[Brett Quelch]

I am just starting out in analyzing and trying to get a lay of the land in REI. I am interested in the BRRRR method, but I do not have much of an idea on Rehab costs. I am not planning on buying anything yet, so I just want to get examples of what I could expect. Obviously, some of the capital expenses like roofs, furnaces, foundation, etc. can sway things one way or the other in a large way, but how about an entire remodel for a kitchen that has bad cabinets?

Here is a home that I found that I feel could be a good rehab project, but I would have no idea how much it could cost.  What do you guys think?

https://www.redfin.com/WA/Tacoma/2116-S-Hosmer-St-...

[Bob Okenwa]

@Josh Cuthbertson I am no contractor nor rehab expert, but for this property a rental, I could see around $10-$15/sq ft as a very, very general estimate. 9 pictures isn't a lot to work with, but it looks like every surface needs to be re-done. As long is it remains cosmetic and doesn't get into systems replacement, it shouldn't be overly fancy or ridiculously expensive. Laminate floors and counters, used appliances, prefab cabinets, fiberglass shower/tub surround, generic faucets, etc. Maybe around 15k-25k. Hard to really say without knowing every issue with the home.

I would suggest you read J Scott's book on estimating rehab costs. Great, informative read for those unsure of how to put a price on fixing a property.