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Updated over 6 years ago on . Most recent reply
I know absolutely nothing about renovations. What should I know?
I have no problem admitting that I don't know squat about renovating or rehabbing a house. I had always thought those kinds of topics were for more "advanced" investors or actual hobbyists rather than beginners. However, as I read and listen to more, I keep finding stories of people who casually talk about redoing entire kitchens, knocking down walls, landscaping, completely renovating bathrooms, etc. The way they talk about it makes it seem like these things are integral and obvious to owning property. Or, if not that, that they are necessary for finding great deals that other people "don't see." I also find some property listings that would be good deals except that they need "$30,000 worth of rehab" (just an example). But I don't know what that means, specifically. (Would I simply pay for already-established needs or would I have to figure out those needs myself?)
For some reason, the beginner material here seems to approach renovations as something everyone is already familiar with. What about for a potential investor who has never done more than change a light bulb?
What is the average investor supposed to know about renovations? How much of all of this is necessary that I direct myself, rather than hire out to someone else? Do I have to have "taste" for what the inside of a house should look like? I am intimidated, because all of that specific house knowledge seems like a completely separate field of study in itself, whereas I'm only just getting acquainted with the math side of it. Coming from me, this seems like months' more of study in an already complicated business. I know nothing about materials or hardware.
Should I just not even consider properties that need renovation in this case? I don't want to let deals slip by just because I'm not handy with tools or construction, but then again, I really don't know how much one should know.
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![Christopher Phillips's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/661732/1621494946-avatar-christopherp83.jpg?twic=v1/output=image/cover=128x128&v=2)
There are a few videos on YouTube on estimating rehab costs.
Also, J. Scott has a book on estimating rehab costs: https://www.amazon.com/Book-Estimating-Rehab-Costs...
As far as swinging a hammer goes, most home owners traditionally swing a hammer on small projects. Knocking down entire kitchen isn't common, unless you're just one of those types that likes that type of thing.
Here's a general way of thinking about projects: (labor and parts can vary by region).
New kitchen: $25k-$35K depending on size
New full bath: $10K
Floors: $1K-$1.5k per room
Roof: $8K to $10K depending on size
etc.
Real ballpark. There are tons of websites out there that will give you ballpark numbers. That's usually all you need. You don't need to know if the wood flooring is oak vs. maple. You don't need to know if the kitchen counter tops are quartz vs. granite. You'll get into the details at some point, but you budget in ballpark figures because most of the expenses will come down to labor.
As an example: let's say you need a new roof. You get three quotes based on roof line complexity and square footage, putting on a new layer of shingles versus stripping it all off and putting on new plywood. Your costs will vary depending on if you're willing to let the project go slow over 3-5 days with a mom and pop team, or 1 day with a giant crew (one group to strip it, one group to build it). The more "people costs" you have and the bigger the rush, the more you'll pay. If you have a team of 2 people and they take their time, you'll pay less, but it will take longer.
Another possibility is to also join in and swing a hammer. Even if it's just helping out with demo and taking trips to home depot. But, you can't scale up your business like that. If you want to scale up, you have to let people do what they do best and you manage the business.
Of course, at the end of the project, you might be the one running around with a little Windex and roll of paper towels getting things ready for the open house...