Any Builders in the House? NJ Rehab Costs Per Square Foot.

[Account Closed]

I would like to get a better understanding of rehab costs per square foot in Northern NJ. The type of renovation projects I typically work on are much more involved and custom than what I'm looking for, so typical numbers are $150/SF and up, depending on the type of project and finishes. I'm looking for numbers on a basic multifamily rehab that I can turn into a rental (upgrade electrical, plumbing, economical finishes, etc.). Assuming there are no structural problems, or site work, what is a fair range I should use as a guide for NJ? Is $25-$50/SF doable if I put in sweat equity where I can, and buy materials myself? I'm new to this area, so would love to connect with people who have experience working on NJ rehabs. Thanks!

[Manolo D.]

Since you are posting in the contractor's thread, I assume you want a contractor's opinion on how to save some dollars. I'm not from NJ but I would suggest you get a labor only contract and buy materials through commercial credit lines (not from banks) from big box stores or your local hardware. There are too much factors on what you are trying to do, your post is too broad. Your best bet is lock in into a number say if you want to spend $50/sf, budget $40-45/sf for your contractor, you could ask them, what can you do with $40-45. Your second best bet is, if you plan to spend $50/sf, you take $25-30/sf on labor, ask a contractor what he can do with that, then spend about $10-15/sf in materials. Always, always, and always, make room for contingencies, at a minimum 10%.

Sweat equity to me is more significant savings than just buying materials. If you are talking about spending around 50k in materials, most stores will ship anything free for a minimum of 2k order. To create a sweat equity, you need to be really good at project/construction  management in the degree where you will know what to pay for something before you sign the contract, or do everything in-house (meaning having a license and in-house employees for the rehab).