Rehab Estimate in Fayetteville, NC

[Robert Shortsleeves]

Hey Team,

I made this post back in 2020 and now that the world is a different place I wanted to see if these numbers still apply or should we bump these up $5-$10/sf?

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2020 Post Below: 

I'm a Fayetteville, NC investor and wanted to share the way I analyze rehab costs. When I started buying rentals this was one of the hardest and scariest numbers to put into the BP calculator so I figured I'd share and hopefully help some folks that are stuck.

If any more experienced inventors have some feedback that would help too.

1. Lipstick (paint and floors) --- sqft x 5-10 = rehab cost

2. Light (Paint, floors, appliances, fixtures, ect.) --- sqft x 15 = rehab cost

3. One Cap Ex + 2. (Roof or HVAC) --- sqft x 20 = rehab cost

4. Two Cap Ex + 2. (Roof AND HVAC) --- sqft x 25 = rehab cost

5. Full Gut --- sqft x 30-35 = rehab cost

Example: 3/2 rental with 1150 sqft that needs a new roof, HVAC and all the goodies inside (Number 4). Not a gut job but you'd want to update the kitchen and bathroom cabinets with some hardware and paint. You may need to get a new countertop in the kitchen, some decent landscaping and minor exterior updates/repairs. Of course, you'd need to put down some LVP in the common areas and probably carpet in the bedrooms.

1150 x 25 = $28,750

If you have the right team you can defiantly get this sort of rehab done cheaper but you'd be safe with this number.