$10, $20, or $30 per sq/ft tool

[Nathan P.]

A contractor in my market told me the other day that he uses the following tool to roughly estimate rehab costs before he actually goes and itemizes everything needed on a rehab.

$10 sq/ft-carpet, paint, blinds, cosmetics, etc.

$20 sq/ft-carpet, paint, blinds, cosmetics, bathrooms, kitchen, etc.

$30 sq/ft-carpet, paint, blinds, cosmetics, bathrooms, kitchen, roof, cement work, etc.

So basically he grades the property 123 (abc) and the applies the cost per sq/ft to the total square footage of the property.

Does anyone else use a similar method to help them save time analyzing deals and focus on deals that look more appealing? I am interested to hear other variants and methods you are using as well.

[J Scott]

Personally, I think that's a horrible way to estimate.  Prices will depend on lots of things other than just square footage, like the type of materials you're using, where you're purchasing materials, what kind of contractors you're using, whether you're GCing the project or hiring subs, the location, the time of year, your negotiating skills, etc.

You could spend $20/sf just on appliances in some houses...