Good Formula for Estimating Rehab Costs in Gilbert, AZ

[Jason K Green]

Okay, let me start by saying I know the ideal thing to do would be to walk a property with a contractor or three and look for everything that needs to be repaired and get multiple bids. But when that is not an option, what formula do you use to estimate rehab costs in general in your area. If you're in or around Gilbert, AZ, then even better.

I have one investor who uses a $50-60K estimate for every house he flips. I have another who uses the following formula ($17 x sq footage + $10k) x 1.1  So if he were buying a 1,500sq ft house, he would get ($17 x 1,500 + $10,000) x 1.1 = $39,050 as his rehab estimate.