Rehab Costs for SFRs / Multifamily Properties

[Ian Livaich]

Hello everyone,

I am starting to analyze some deals in my local area as I am looking to purchase my first property.  I am generally looking at 3BR, 2BA properties and some smaller multifamily properties.   A few questions keep entering my mind when I crunch the numbers.  How much should I budget for rehab costs?  Also, what are some of the items that you regularly choose to rehab for rentals, such as painting, flooring, counters, cabinets, appliances etc. (other than capital expenditures).  

I have noticed that a few listings in my area will state a dollar amount that is needed to get the property "rent ready" (e.g. $25k).  Do you find those type of statements to be accurate or do they often entail more work than is actually needed?

I understand that the numbers will vary based on the location and the condition of the property.  I am curious as to what everyone's general approach is in their markets and what works for you.

Thanks in advance.