Need Help with Contractor's Estimate

[Chris Marte]

First time investor here. A contractor has walked-through a property I'm interested in and sent over his estimate for rehab (below - includes labor & material). Not really sure where to begin when reviewing the estimate as I'm not familiar with rehab projects.

Looking for advice from those who have experience with rehabs. Are there some cheaper options my contractor may not be considering? ie. laminate flooring, etc. What questions should I ask?

[David Weis]

As an investor and contractor, prices will vary based on location. Here in Florida I budget $40 SF for a basic remodel with cheaper flooring, lights, etc. A better remodel would be $50 per SF. A higher end remodel is $60 SF. 

You never, ever, ever want to underestimate and then have to go scramble for more money. Always budget high and be safe.

In addition, a contractor is just giving a best estimate. There is no way to see through walls or floors. Things will change as you start demo work.

Lastly, keep changes to a minimum. Changes cost money and extra time.

Having said all that, I looked item by item and his prices seem reasonable. I agree with him that if you are selling the house you want to look closely at the kitchen. If you can enlarge a kitchen, do it! His cabinet supplier should have a designer that can work with you for free.

I think his electrical is about $5K too low if he is replacing all knob and tube wiring and updating panel.

In regards to flooring, if you are selling the house avoid cheap flooring. That is not a place to cut corners.