How much will it cost?

Question

I'm trying to figure out the total cost of a renovation in the Midwest.

On a house I'll sell for 150K, would these numbers be enough? Doing most of the work myself.

Flooring, 1300 sq. feet, $4,000.00

Baths, (2)  $4,000.00, 2k each.

Kitchen  $6,000.00, solid wood cabinets and granite tops.

Exterior, vinyl siding and windows  $10,000.00

Misc. problems,  $5,000.00

The house would be in the Midwest, near St. Louis. I know in Galveston Texas I can do the kitchen for $5,500.00, I've had two done, the windows and siding up there should be cheaper, no windstorm to deal with.

The last two houses in Texas I did everything in the kitchen except the cabinets and countertops.

Were thinking of moving up there and doing flips full time.

I'm just a little nervous since it would be our only source of income as opposed to here I have my door business.

Thanks for any advise or comments.

Christopher Brainard · Answer

@David Soest

The prices you're proposing seem inline for inexpensive finish materials, based on what I've done on my past few projects. Living off flip income is a separate subject - I hope you have a sufficient buffer to wait out any delays in renovation and/or sale.

-Christopher

Account Closed · Answer

@David Soest

Of the last 3 deals I closed on 1 took over 3 months and the others are over the 4 month mark.  It seems to take forever to close anymore.  Plus there are new closing requirements that seem to prolong the closing by 1 to 2 weeks.  I began full time investing 8 months ago and am finding it to be very stressful.

BTW Your prices seem good

David Soest · Answer

Good point about the market dropping....

I can buy mid grade vinyl for $100.00 a square. Of course I have my own break and trim coil is cheap.

Thanks for the input.

Lee Carrell · Answer

Obviously, prices for materials and supplies vary even if you are in the very same city. What I've learned is to shop around for the best material at the lowest price! Every dollar saved is a benefit, because you can use it on something else that you will surely need or it goes into HNB. You've already experienced the biggest savings when you do it yourself!

If you do move to the St. Louis area, feel free to open up your door business here too!

Gary Hert · Answer

David,

My wife and I have flipped 3 homes in NJ and we do nearly all of the work ourselves.  The costs that you listed for flooring, baths, kitchen, and exterior (including siding, windows, doors, and aluminum trim) match what I have been paying for mid-level finishes.

The cost to deal with the miscellaneous problems will vary tremendously depending on the condition of the property and level of work that you are trying to achieve. The total cost of materials for the three 3 bedroom homes that we have renovated has ranged from $33K to $50K. All 3 homes needed extensive work and looked like new when we were done.

We have been doing this full time for the last 2 years.  As Christopher mentioned, it can be a long time between “paychecks”, especially if you are doing the work yourself.

Gary

How much will it cost?

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