cost to insulate per linear foot?

Question

I finally received my first contract to wholesale! I noticed that there is no insulation in the exterior walls and since the drywall mostly needs replaced anyway, I was wondering what to estimate for that budget? I am trying to put together an estimate of rehab cost for any potential buyers. Any help would be appreciated. the property sits in Broken Arrow, OK.

1089 sq ft

146 linear ft of exterior wall space

Thanks

1089 sq ft

146 linear ft of exterior wall space

Thanks

Jason Douthitt · Answer

I've done "cosmetic rehabs" in the past so I've been using that knowledge for the repairs. This particular deal has room for up to $40 ft for the 70% ARV.

I just read a post recomending your book so expect that order soon!

J Scott · Answer

Using a $/sf price to estimate costs isn't going to work for someone that doesn't have experience.  If it's a gut rehab, it's most certainly not $15/sf and could be as high as $50/sf or more.

As for whether you should be able to do this, if you can't estimate rehab costs, how are you possibly going to know what a good deal looks like.  I can promise you that if you start shopping a gut rehab to investors, but there's only enough room in the budget for $15/sf to make it a good deal, those investors are never going to take you seriously.  It's not hard to ruin your reputation in this business, and as a wholesaler, it's extra easy.

Learn to estimate costs...

Greg Palmer · Answer

Up here in Northern Ca. we run about $1.15 per sq. ft. for insulating.

Jason Douthitt · Answer

Thank you for the prompt reply!

On a side note, should I be spending my time running these numbers? The course I took on wholesaling said to plan $15/per sq ft of house to budget repairs. From what I see, this is a full gut rehab and that's about half of what I'm seeing. Should I as a wholesaler spend my time doing this or will the buyers do it themselves and disregard my estimates?

J Scott · Answer

To add to my post above, I have a feeling a lot of investors would pay less than the low end of that range (i would), but as a wholesaler, you should be conservative.

J Scott · Answer

I don't know your area, your contractors, your building codes, etc., but a very rough estimate for labor and materials to install fiberglass batts, per linear foot of batt, is $1-2.

So, 146 linear feet, at 16" stud spacing is about 110-120 wall cavities.  Assume 8' tall ceilings, and that's about 1000 linear feet of batt.

If I had to guess, I'd say $1000-2000.  And you're probably on the lower end of that range.