Estimating costs of repairs

[Douglas B.]

this is a post for the SUB30kCLUB and anyone else who can help.

When buying a property in need of some rehab, what do you estimate for cosmetic rehab costs vs major rehab costs? I know that costs will vary widely by region, who is doing the work, property condition, etc. but I'm looking to get a feel from people about what is a reasonable ballpark for various projects. For example, a kitchen that needs cosmetic rehab such as painting, minor updating, new linoleum floors, etc, might cost $X, whereas a total kitchen overhaul including new cabinets, etc might cost $Y. Same with bathrooms and living spaces.

Let's also discuss major repair items, such as utility costs including separating utilities on a multifamily, new roofs, window, etc.

I'm not a handy guy so I'll be relying on contractors to do the work.

[Bryan L.]

@Douglas B. - Here's what I do. After a few years of flipping houses in my area, I noticed that the rehabs usually came up to about the same cost (repairs, plus closing costs, plus carrying costs). These costs usually ran me about $10,000. So now, I start with $10,000 as a baseline for a typical rehab in my area (which would include the basic stuff, carrying costs, closing costs, new flooring, replacing some doors, some basic plumbing and electrical repair, painting throughout, minor repairs to sub-floor, appliances, etc). Then I start adding in other things if needed like: new roof (+- 5K), new cabinets (3-5K), new windows ($200-$250 each), new HVAC (3-5K), etc. Most everything that I buy is MLS-listed REOs and my costs are almost always between 10-20K in the price range that I deal in. If it's going to be less than 10K, some o-o or newbie will probably run the price up too high anyway. If it's going to be over 20K, it must be in really, really bad shape. That's my approach. It may not work in your area.