Rehabbing Question

[Scott Gombar]

We potentially found a really good deal.  We are going to have contractors look at it to get an idea of what needs to be done but at first look it needs a complete gut then new walls, fixtures and appliances.  It will also need new windows.  Not sure about the condition of the floor yet.  

My question is what is the most you have ever spend on rehabbing a property (single family home).  I would be especially interested in hearing from people in the CT/NY area.  

[Hilary Karaman]

@Scott Gombar 

As long as the numbers work, its hard to say that I'd put finite limitations on anything.  Just sold a rehab in Philadelphia purchased at $123k, put just under $100k in and sold at $345. 

Every area is different, but when I walk into a potential purchase to rehab, I count windows and doors to be replaced, account for all systems and majors (kitchen, bath, roof) that need replacement and, per condition of house, I have an idea of cost per square foot that I tack on. This checklist serves me for just about the full spectrum.   Hopefully, your local market has picked up like Philly has, but start thinking about debt servicing, holding costs... It takes time and practice to get comfortable and there is always something new to learn, but I think following a system has helped me focus and become automated so that tackling the learning curve and making adaptations is never that difficult.  

Hope that helps, 

Hilary