Help Me Understand Hard Money Lender Estimate?

[Kat Hussey]

Hello hive mind!

I'm writing my first offer (YAY!) I applied for a hard money loan and they got back to me estimating that the rehab would cost 45k more than I had estimated. We are planning on doing a fair amount of work ourselves because we're handy, so maybe that is where the price difference comes in?

Details:

Property: 2/2 to become at 3/2 with one wall added, 1400 sq ft, 1960s build, list price 115k

Mechanicals: new HVAC 2018, most of the plumbing has been updated to PVC/pex, new roof 2020.

ARV: 150k

Offer Price: 75k

Estimated Rehab: 25k

Contingency: foundation inspection because there are some squishy spots in the floor. If there is something wrong then I'll go back to the seller and negotiate that.

Total Project Cost: 100k (plus all the fees and whatnot)

Monthly Expenses Once Rented: $111 vacancy (estimate because it's my first deal), $139 repairs over time, $139 Cap Ex, $0 Management (self), $30 lawn care

Hard Money Rehab Estimate: 80k

Hard Money Estimated Project Cost: 155k

I'm estimating the 25k based on mostly materials because we would be doing our own labor for cosmetic stuff and basically all the mechanicals look good. We will hire the skilled labor when needed. What am I missing for them to get such a different estimate than I have?