Rehab Budget

[Brian Morgan]

Hi All,

Been lurking for a few months and soaking in all the great information here at BP! Thanks for all the great info!

I am going to be taking on my first REO flip here shortly and feel I have all my ducks in a row on purchase, holding costs etc. The only area of concern is the rehab budget. I have a GC to work with that was referred through a friend. He has done some smaller jobs for me, and I have been very happy with the work. However, as we move to a full rehab, I obviously want to be sure I am getting the best deal on all the work.

Does anyone have a chart or guideline on how to budget these line items out? I realize that this info will change region to region, and contractor to contractor, which is why I am looking for ball park numbers of what I can expect to spend. Maybe you have a detailed budget from a flip you just completed and are willing to share? Again, I realize this info will change based on the scope and size of each item, but any basic Rehab budgeting info will help at this point.

I am outside of Boston in Northern Massachusetts

Thanks Again!

[Rob Gillespie]

I am speaking from years of experience in the rehabbing construction field. There is so much to say about this topic, so little time. LOL! the first thing I caution you on, is giving the entire project to one person. Even if they are GC, they get overwhelmed very quickly and lose interest in the project. You can begin by looking into Microsoft Project, and putting together a Gant chart.Break the job down into small realistic bites. One section for demolition and cleanup. Next figure in your electrical, HVAC, and plumbing. Now that mechanicals are out of the way, put in drywall, time and paint, then trim carpentry. Next put in your flooring.

Although this is very basic info together for you, I hope you are getting the idea of how you need to break it down this wall manageable tasks. Each of these tasks will need to have a timeline any budget attached to it. If ever you hire can the timeline give them a per day bonus, if they go over timeline, Doc and pay per day. Unfortunately I have never had the opportunity to give a bonus.

Once you have this together, if you would like me to take a look at it, feel free to shoot it to me a private message. Best of luck!

PS you may even want to put your timeline and budget back on the forum for everyone to comment on. I am sure you will get more than enough guidance from the community.