This is my process, in detail... I can estimate a typical house in about 20 minutes to within about 5-10%... https://www.amazon.com/gp/aw/d/0988973715/ref=mp_s_a_1_1?ie=UTF8&qid=1493402168&sr=8-1&pi=AC_SX236_SY340_FMwebp_QL65&keywords=the+book+on+estimating+rehab+costs&dpPl=1&dpID=41gSEH-kwSL&ref=plSrch

The entire book lays out the process I use. If you purchased the book from BiggerPockets, it came with spreadsheets that organize the rehab process into sections, with line-item tasks within each section. With some research and practice, you should able to fill in the line-item tasks with the costs you'll expect in your location (and any additional tasks that are common to your properties), and then be able to walk through a property in 15-20 minutes with that spreadsheet to work up your estimate.

We started our first flip yesterday and we'll have @J Scott's two rehab books worn out by the time we're done!

I actually have that book, what page section are you referring to? Great book. It's helped me a ton

Mike V. Cost per square foot is a good ball park number and may work on some things. Doing so, you should carry a contingency % as well, like 15%. The more detailed you are the better as this forces you to think about the little things as well. Here is a good source for construction cost. https://www.rsmeans.com/

Mike V. I don't think this will apply to you at all, but here goes. I have a PM that has developed properties in the past and is connected to contractors. I also use her as my realtor for local properties where I have bought. She can walk a property (before I fly out) and give me a ballpark of what the costs will be based on the builders that she knows. Odds are almost 100% that I would go with whomever she recommended for the actual repairs or rehab so it works out. So I'm getting maybe ~80% of the accuracy of what I could paying a GC to walk the property but I'm getting it free and (most importantly) before I buy a plane ticket to come out. In most cases it comes by far (far) higher than the pictures would indicate. Repairs (no massive rehab) that have been done post-purchase have come in darn close to the projected cost. That said, I always advise her (my PM) to be conservative when looking at the costs. I'd rather know (and budget) that I'm paying $5K than having a $2K budget and it costing me $4K. Which, I know, makes zero sense from a dollars and numbers perspective but I'd always rather be pleasantly surprised. I'd actually love to hear your process. I stumbled into mine through practicality.

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Updated almost 8 years ago on 04/29/2017. Most recent reply

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Mike V.Poster

Investor
Arnold, MD

Rehabbing & House Flipping

Repair Cost Process?

Mike V.Poster

Investor
Arnold, MD

Posted April 28, 2017 09:50

When you go in to look at the repairs on a house, what is your process? Do you do it quickly like a rough rough draft? like price/sq ft? Then do you then come back and do a more thorough investigation? Also, how long does it take for you to go through the house? Is your sow and pricing close to actual cost? I'm just curious to know as I've been doing this for 4 years and have my process, but I'd like to see if I could be more efficient.

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