How should I calculate sf construction cost for gut renovation?

Question

Hi,

I'm reviewing some deals, and one of them requires gut renovation for 5400sf.

Usually when I'm calculating construction cost I'm using avg of 150$ per sf, but with gut renovation i'm not sure what number to use for estimate.

The project is in DC if it helps.

Thanks!

Account Closed · Answer

$100/sf is a fair estimate. If you want something better than average go with $125/sf.

Lee Marsteller · Answer

I do lots of gut renovations in DC. I agree with Michael's comments above. In this market you really should not use a "standard SF cost" to do this type of project. There are lots of variables in gut renovations, especially here in DC. A project of 5400sf sounds like it might be a multi-family deal and that has its own variables and nuances as well. If you give me some more parameters, I can see if i have anything in my database that comes close in scope and size. You will also need to know your way around or hire someone to handle the permitting and entitlement process if those are needed as navigating around DCRA without expertise can cost you project month and months of delays.

Manolo D. · Answer

That is what a "gut" means, everything aside from exterior studs, floor joists, and load bearing walls. Everyone should be at the same ballpark if you "scope" it correctly (know what you want, list it, bind it to your contract), you are spending a substantial amount, add a little more to have it professionally done.  We do it with 4 guys in 25-30 days, speed is what you are looking for, not someone who waits a week or two for a sub to come out and do their trade.

Michael Woodward · Answer

@Isaac Green, Everyone has their own comfort level for how to do things.  With that said, I would NEVER estimate a renovation by cost per foot unless I had done a near-exact project in the past and had actual cost figures.  Keep in mind that each "gut" project will be different unless you truly gut the entire house and replace EVERYTHING.  New construction is pretty consistent from a cost standpoint but renovations are really tricky.  Unless you absolutely know for sure that you can do all the worst-case repairs and still have plenty of room in the budget, I would strongly recommend that you get some quotes.  Three is always recommended.  My two cents....

Isaac Green · Answer

Hi Danielle,

Its exactly my case :)

100$ is what i thought as well...calculated 115 just to be on the safe side.

Thanks!

Danielle D. · Answer

Hi Isaac,

I'm doing something similar in Denver.  There are many dependencies to consider but assuming you took it down to the studs and the roof and siding don't need to be replaced and there's no structural issues or additional structural framing, I'd think you could do it for $100/sq ft.  Again, really depends on your situation.  You'll have additional demo cost for ripping out plumbing, HVAC, insulation, electric, etc.

If you have more specifics that would be helpful.

Danielle