Affordable repairs and renovations

[Ashley Zigler]

Hello, Bigger Pockets colleagues! This is my first post and it's a question I've been wanting to ask for a long time. I keep reading about investors purchasing properties in need of major work and completing all renovations (including kitchens and bathrooms) for $20,000 or even $15,000. How is this possible? I recently considered buying a duplex in Pacific County, WA that needed mostly cosmetic renovations, and the quote from a contractor was $26,000 for labor only! Are low renovation prices achievable only if a general contractor isn't utilized or only after building a relationship with a contractor? I honestly want to know how so many investors are doing full renovations on such small budgets. Thanks in advance for any insight!

[Steve Vaughan]

I'd definitely get a 2nd (or 3rd) estimate @Ashley Zigler.  Coastal labor prices are higher than most areas I have found.  It's a function of demand for sure, but this quote sounds high even considering that.  

When I see a tradesman van at a house here, I note the address and send a postcard to absentee owners.  Sending 2 today.  They will receive the plumbing bill AND my mailer at the same time.  Never seen a plumber show up for less than $300, leave for less than $700.  Makes you learn how to get by and do stuff yourself.

Search Ryland Tanaguchi's (sp?) thread on why he thinks flipping in Seattle has peaked and no longer makes sense.  His crew labor costs went from handyman $17 to $50/hr or some such in a few short years.  He's transitioning to different niches in other markets and he knows his stuff.

Welcome to BP!