What would a gutted rehab cost?

Question

Im trying to figure out the cost of rehabbing a gutted house on a property I found that is being sold as "lot for sale." I called and they are asking market value of a house, $210k. The house on the property is completly gutted since the current owners wanted to demolish it and build new on the property which is 7,200 SF. As it stands, the house is a 1960's 3/2 - 1525 Sq' completely gutted, has no AC, no central heat, not flooring and original windows... just exterior walls, roof, and bare studs. No foundation issues).

A ball park figure would greatly help in my calculations, and any advise would be greatly appreciated.

A ball park figure would greatly help in my calculations, and any advise would be greatly appreciated.

Herbert MacDonald · Answer

Thank you all for your help. It's in Houston. Never flooded. $210K is way to much for land in that neighborhood. Land in the ares goes for about $125k He did mention that it would be about $65K-$85K to fix it. I made an offer, but since they are developers I doubt they will take. No one, but another investor, will buy it.

Jerryll Noorden · Answer

It depends on sooo much. Especially when you are flipping (and not holding) there really is no way to give a concrete answer.

But to give you an idea why it depends on so much...

It depends on location (2 reasons).

First reason, if all the houses in your area have granite countertops, central AC, yada yada yada, you need to include them too.

An other reason it depends on location, believe it or not contractors are more expensive in those fancy people neighborhoods. Do a flip in a warzone and you tent to get lower contractor prices.

Then it depends on the market, .. do people love the area, are there many houses you are competing with for sale when you are done... If yes, you better make sure your finishes are impeccable..

etc, etc.

See how a solid answer is hard?

Monkey Power!

Aaron K. · Answer

depends on where in the country the property is but if they are marketing it for land value that is probably what it is worth, evaluate like it is a new build and maybe deduct foundation and framing costs.