Luxury Home Rehab Estimating

[Christopher Telles]

Hey there BP nation. First time questioner. I've been on BP for a little over a month and reading and learning a lot about fix N Flips, and also participating in the forums sharing knowledge from my experiences in real estate. 

I'm looking for some guidance from some of the more experienced California flip investors in luxury homes to see if they might use a matrix or formula to plug in a set of  rehab estimation numbers for a luxury rehab as they are initially looking into the potential of a project being an acquisition candidate before they actually walk the property.

I can typically create an estimated improvement budget for almost any commercial property in both office and industrial for proforma purposes before visiting the property, but residential is a new animal for me. 

Below I will provide an overview of a property that looks to meet most of the underwriting criteria I've established for a viable investment e.g. 75% ARV test, affluent neighborhood, great school district, strong resale market, etc., but thought this information would be useful for those who might answer. The ARV is pegged at $1,200,000 supported by nearby comps.

I'm currently underwriting a 4bd 5ba luxury home that is approximately 3,000 sf in a Southern California affluent inland neighborhood in Los Angeles County. The home was custom built in the mid 80's and is in terrific shape, but its now dated and will need a new kitchen, baths, and some walls removed to open up some of the space that buyers find more attract today. Obviously new flooring and other accoutrements will round out the improvements.

I know there is no way to know what the actual budget number 'will be' until the property is walked, but I'm curios if there are some numbers, based on the luxury rehabs more experienced rehabbers have rehabbed, they use to plug into a quick proforma review they may use while investigating a new luxury market property before walking the property. Example, price per overall square foot, kitchens X, baths y, flooring Z. 

I've estimated the rehab for more moderate priced homes but I suspect a luxury home is going to have a dynamically different rehab cost structure, and as I've stated I'm curious to know if there is a way to estimate a prototypical rehab number for a luxury home.

To your continued success!