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Updated over 5 years ago,

Account Closed
  • Flipper/Rehabber
  • Silicon Valley
2
Votes |
6
Posts

Repair Costs in Silicon Valley

Account Closed
  • Flipper/Rehabber
  • Silicon Valley
Posted

Hi,

I see a lot of videos and posts on easy ways to calculate repair costs. From what I've seen these numbers are way off for my market (San Francisco Bay Area). Most recently I saw one that said an average rehab for under 1500sqft would be 25k which just seems way too low for where i'm working. I've only wholesaled houses and haven't rehabbed them myself. Also on the deals I've done I had someone else running comps for me and calculating rehab costs. Now that I'm working more on my own I'm trying to get a clear idea of repair costs so I can explain my offers to sellers more eloquently.

For example- A 1,100sqft 3/1 i'm looking at right now should ARV for 970k. It was last bought in 1996 and doesn't really look like its been repaired since then from what I can see on the outside. I'm thinking of coming back and offering 776K which is 80%ARV. What would be a justifiable price to say I would be paying for repairs (probably kitchen and bath included)

Can any experienced investors working in the Bay Area shed some light on this for me? Basically I'm just asking for a general range someone could expect to pay for rehab based on condition and square footage in the current market in this area.

Also as a side note the property is on a 5000sqft lot. The owner mentioned this as a hot point for why the property could be worth more (expansion). Every other house in the area is a similar size to this property and a 3/1 or 3/2. Would anyone even really want to buy a bigger house in this area/ would a rehabber really be more tempted to pay more for this kind of opportunity?

Thank you!

-Max Kibler