How to analyse the rehab required on a house

Question

my Question is we have bought a house in Cleveland :

1. How to analyse the rehab work required ,based on sq ft , no of rooms

nterior Features

• # of Units: 1

Unit Information

• # of Rooms: 7

Room Information

• Heat Type: Forced Air

Heating Information

• Unfinished Basement Sq. Ft.: 624

Basement Information

• # of Baths (Total): 1
• # of Full Baths: 1

Bathroom Information

• # of Bedrooms: 3

Bedroom Information

Parking / Garage, Exterior Features, Taxes / Assessments

• Primary Garage Type: Detached
• Parking Type: Garage
• Garage Type: Detached
• # of Parking Spaces: 1

Parking / Garage Information

• Roof Type: Asphalt
• Structural Style: Colonial
• Property Condition: Fair
• Patio Type: Porch - No step
• Exterior Material: Wood
• Construction Quality (1-Lowest, 10-Highest): 6
• Architectural Style: Colonial

Exterior Information

J Scott · Answer

You're not going to be able to analyze based on square footage or number of rooms.  You're going to need to learn how to estimate by creating a scope of work and then signing values by getting bids.

Aaron R. · Answer

@Kiran Alisam. What is your strategy on this house? I'm just curious as you stated that you already purchased it yet you don't know what rehab work is required.

J Scott · Answer

For reference, I authored two books for BP, one of which is specifically geared towards teaching the methodology for estimating rehabs...feel free to check it out:

http://www.biggerpockets.com/flippingbook

Kiran Alisam · Answer

@Tom Kuhen

the property is in Garfield Heights Area,

@Aaron R. I have got the bid on the property with the repairs required, but wanted to check in this forums on how to select the contractor based on the bids, Is it purely based on Price , or Referrals

This would be the first time i would be working with them

@Kyle Gray Thank you for the extensive reply , how do i get involved in the selection of items as the contractor is going to do the selection for us on whats required based on the bid submitted, Please let me know how i can get involved in the selection

Thank you @J Scott

@James Wise  i will check with some GCs

Thank you all

James Wise · Answer

@Kiran Alisam

There is no short cut to this. You have to look at the property and determine what works needs performed and estimate the cost of doing said work. You will not learn how to gauge the cost of said work until you have gone through several rehabs and performed and or paid for the work.

At this point you need to contact some G.C's and have them provide you with quotes.

Kyle Gray · Answer

Hey @Kiran Alisam, I typically like to make a checklist with anywhere from 10-20 categories. Examples of these categories would include things like foundation, painting & flooring, windows, bathroom, etc. Go through each one and estimate how much it would cost to repair each category. The best way to learn how to estimate the repair cost IMO is just google the item you need replacing to get a price or go to Lowe's or Home Depot and just walk around and look at the prices. You'll find most things are cheaper than you'd expect to replace or update. Another thing to keep in mind is if/how you plan on changing the floor plan of the house. Sometimes it makes more sense to move a wall to open up a room or add a bathroom to get the desired bed/bath count. To estimate the cost for the changes to the floor plan you should consult a contractor. Add all the categories up to get a ballpark rehab number. Once you have that number, contact a few contractors walk them through the house and explain what you want to do. Get a couple bids from multiple GC's and then pick the bid you like best. Hope this helps and congrats on the new investment!

Regards

How to analyse the rehab required on a house

Most Popular Reply