Fayetteville, NC Rehab Costs

[Robert Shortsleeves]

Hey Team,

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.

[Robert Shortsleeves]

@Ray Hurteau sounds like you should be looking in a different market. Lol

I’m pretty lucky to be living in one of the best rental markets. We have minimal appreciation as best but we have cash flow for days. Great place to learn.