Estimating Rehab Cost

[Kenyon Williams]

Hello Bigger Pockets Fam! I currently have a property under contract looking to brrrr the property and I'm in the rehab portion of this method. My question is when taking bids from contractors how many do you usually need to have to get an average cost 2-3, or do I need more? This will be my first rehab so what are the most common areas I would want my contractor to focus being that this is a tightly budgeted project?

[Justin Hoggatt]

@Kenyon Williams, I applaud you on taking your first jump and getting a property going.  I wish you luck on it and expect that you'll have fun with it. 

Since this is your first one, you'll be learning a lot and I'd work on getting 3 bids at a minimum.  I've found that my third one often times ends up being the one I end up using.  Anymore and you'll get into the analysis paralysis.  I suspect they will all have their own opinion as well which can make coming up with a final rehab decision difficult.

I think it's hard to answer what to focus on without seeing the house and knowing the details.  What is the total budget?  Does it need a minor rehab?  Some of the easy changes that I've focused on in the past is better lighting and fixtures, new paint, and baseboard (not exactly the most notable upgrade but I find it works for aesthetics).  Next would be flooring - do you need to refinish hardwoods?  Or, put in some luxury vinyl planks - it's water proof and pretty durable.  Big ticket items would be new kitchen and bathrooms.  I have rented a house multiple times purely based the kitchen that I put in - the rest of the house is funky.  The bathroom is somewhere where the family spends a lot of time and don't underestimate a good countertop for a family, again, depends a bit on the house.  Other little things that can make a good difference based on the age and condition of the house are wall plates/outlets/switches and making sure the house is clean!  

Feel free to reach out if you have more questions and let us know how the budget ends up looking with your contractors.