Total Rewire costs?

Question

I'm looking at a property the house (6-units) was built in roughly 1890-1900 and possibly the wiring needs to be completely redone. It looks like it has been updated/worked on at least once but a total mess in the basement.

I was just wondering the timeframe and potential cost of such a project. I was doing some research online and came up with from anywhere between $14,000 - $30,000 with a week+ of work to do it. Are these numbers in the ballpark? I the house is roughly 2,780sq ft and 6 units as I said.

I know you can't give me exacts and the best option would to have an estimate done, but I was wondering if anyone could ballpark it as it could possibly be a deal-breaker if the cost couldn't be negotiated into the purchase price. Or any experience of the headaches of getting this type of work done while it is fully rented out.

Just looking for any insight on the matter if someone has run into this before.

Thanks in advance.

Steve Babiak · Answer

If you want to get the added meters, the utility company will almost certainly expect to see permits.

J Scott · Answer

Hey Kurt,

Labor prices are obviously going to depend on a LOT of variables, but this might give you a start:

-  If you have to upgrade the service, assuming between $1200-2400.  If you have/need multiple panels, figure an extra $400-800 per panel (assuming full panels and not just a small panel with 4-6 circuits/breakers).  This should cover a new meter, service cables, grounding rods, new panel and new breakers.

-  If you just need a single panel replaced, assume $600-1000 for the panel and all breakers.

-  For every circuit you need run, expect somewhere around $125-250.

-  For every outlet/switch you need replaced, expect somewhere around $50-100.  GFCI and AFCI could be an extra $20-30 each.

It's hard to ballpark what the total range might be, considering you're looking at 6 units, but assuming new service, separate small panels for each unit, about 4 circuits per unit, and about 30 outlets/switches per unit, you're probably looking at $15-30K based on my numbers above (which happens to coincide with what you came up with above).

Also, if access is particular easy (no sheetrock in the house, easy runs between levels, no tenants/occupants to deal with, etc), you can probably get a decent discount off these prices (perhaps 20-30%).

Remember, this is with an electrician that is providing investor pricing (which really isn't going to be too much less than retail, as electricians tend to have plenty of work and don't need to provide huge discounts).

George Paiva · Answer

If you check out this thread you will see a lot of good info on converting oil to gas.

http://www.biggerpockets.com/forums/52/topics/80896-converting-apartment-bldg-from-oil-heat-to-nat-gas

George Paiva · Answer

Yes, I factored in about $20k in rehab to install new boilers and hot water tanks. But I also replaced a lot of copper with PEX and updated a lot of the plumbing.  I also renovated one unit that was vacated by the previous owner.  Oh and added laundry in the basement.  I did the majority of the work myself except with it came to plumbing and electrical.  I have family and friends in the trades that helped me out.

My initial estimate swag was $12k but I know better so I doubled it.  My actuals were $21,939.82 for everything.  Luckily the property still cashflowed while rehabing.  I only put an additional $16,310 of my own money after purchase.

George Paiva · Answer

I have to upgrade my meters and panels and put in an additional landlord meter at one of my properties.  4 meters/4 panels all updated would be around $8k from my electrician.  He is also a good friend. Something I will need to tackle in the next couple of years.  Luckily the current setup is handling the draw right now. I just reimburse the first floor tenant $50 a month to handle common area lighting.

Get some electricians in there to give you a rough estimate.  Usually in a rehab property I am performing the due diligence before close I bring HVAC, Plumber, Electrician for a walk through.  Worth every damn penny.

Steve Babiak · Answer

Not familiar with that submetering device.

I'd just get the service done properly.  Each unit gets their own meter, the service cable to the utility is beefed up for modern device extra power draw, each unit has their own circuit breakers.  I imagine that some of those units might even share a breaker now, so that if an overload in one trips, the other loses power somewhere too.  The benefit to this: you are not paying a big electric bill to the power company and trying to collect; the electric company has to collect.  And if tenant does not pay electric company, the electric company shuts off the electricity service; imagine the landlord shutting off the power due to non-payment - that would be classified as "self-help" eviction.

J Scott · Answer

I'm not one to tell others what to do, but in my opinion, that seems like it would be a bad decision...  :)

Steve Babiak · Answer

How many meters does it have now?  With 6 units, I expect to see one meter per unit plus one for the common lighting / common area, so at least 7 meters should be there.  and then 7 panels too.

George Paiva · Answer

Kurt K. do you have contractors lined up?  I mean friends/family in the trades?  I read from your other post the property you are getting requires some work.  Always good to have contractors at arms reach for these things.

Kurt K. · Answer

Awesome stuff George Paiva! Thanks to the link to the other thread as well. Lots of good information you've provided for everyone.

Total Rewire costs?

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