Help Estimating Renovation Cost

[Christopher Costa]

Hello All,

I am new to real estate and have come to realize I do not know much about renovation costs. I am in the Atlanta area and am thinking about investing in a small apartment complex with 700 square foot units. The units will likely need a full renovation on the interior to bring them into the modern age. This means new paint, new appliances, potentially repaired or replaced walls, ceilings, and floors, as well as window replacements. I have no idea how much it would cost to do this sort of thing. So my question is, could I get some rough estimates or ranges on the cost I could expect. I know it wouldn’t be exact and I could always run in to more problems, but I just want a ballpark to have in my head when running numbers. If this is too general, where could I find more information on this? Either general renovation information or more exact costs associated.

Thank you,

Chris Costa

[Michael Lee]

Hello and welcome to this site Christopher!  I  was in construction for about 40 years and I will try to help ypo the bast I can.  Unfortunately, I have been bedridden several years and have lived in or just outside of Dallas, Texas all of my life and the costs are probably different than Atlanta, Georgia.  Just last Saturday I got a breakdown of current construction costs that I will use. 

First of all I will say that geographically all costs may be different.  I is great to hear that you are into looking at apartments.  They are currently on the top of my list.   It might take a little more creativity and some Joint Venture cash available partners and you'll probably not need any help finding Partners.  I just read a book entitled "How to Buy and Sell Apartment Buildings" by Eugene Vollucci.  It was very good. 

He gives many good tips including physical things, tracking ideas, and how to find any changes that help you in apartment buying and selling. that might be good for you.

Anyway, lets get back to construction costs.  Most physical items have standard to upgrading models.  All of the cost info I will give you are for standard things.  Those windows will cost you $250 plus their installation.  Interior paint will cost at least $1.50 per square foot.  Sheetrock will be at least $1.43 per square foot.  Appliances for the kitchen will start at $1100 (a Range, a Refrigerator, and a dishwasher).  New flooring, from carpet to wood will cost about $2.00 TO $7.50 per square foot.  It will usually cost twice as much as you think.  Complete interiors will cost you about $15,000 to $20,000.  I hope some of this helps you.

Good luck to you!