Chicago costs for House Flipping Spreadsheet

[Steven C.]

Hello, I am midway done through my first gut rehab and flip in Chicago. The costs were super cheap partly because of COVID and partly because most laborers came in as personal favors from a friend.

I recently purchased the House Flippers Spreadsheet to analyze another potential deal. I don’t really have a good idea of what things really cost in order to properly give a detailed estimate and see if the deal is worth it. Is there a Chicago specific directory of average costs for things, like price per sf of replacing existing decking or flat roof replacement cost per sf? Or do I call up a contractor and ask them for each of these prices (there’s a lot)?

[David Robertson]

Hey Steven,

The most accurate way to estimate rehab costs is to talk to local contractors and start developing your own database of costs.

Here is the general process I recommend for learning how to estimate rehab costs:

#1 Read the Book on Estimating Rehab Costs

JScott's 'The Book on Estimating Rehab Costs' is a great resource for new rehabbers to learn how to Estimate Repair Costs on 25 common rehab repairs.

https://www.biggerpockets.com/store/the-complete-g...

#2 Explore Lowes and Home Depot to Learn About Material Pricing

Take a tour through Lowes and Home Depot (or their websites) and look at finishes materials and fixtures that you will consider using in your rehab projects. This will help you get a better idea of what tile, hardwood, carpet, plumbing fixtures and light fixtures costs for your rehabs.

#3 Contact Local Contractors for Labor Pricing

Call local Subcontractors and get budget pricing for common repairs on your typical rehab project.

For example, call a roofer and ask what their average cost per Square of Architectural Asphalt Shingle Roofing would be on a 1,500 sf house, with a 6/12 pitch.

Note: Some contractors will be reluctant to share pricing without seeing the property, but tell them you are just looking for a rough budget number you can use on future projects.

#4 Compile Your Prices into a Spreadsheet or a Database

Once you start to get a better understanding of Labor and Material costs you will want to store this data in the spreadsheet.

The House Flipping Spreadsheet has a database of common repairs & budget prices to help you get started, but you really need to start building your own cost database based upon your specific projects, materials & contractors in Chicago.

#5 Practice, Practice, Practice

Walkthrough potential rehab properties (or find properties virtually online) and practice creating detailed scopes of work, quantifying repairs and estimating rehab costs for the projects.

#6 Complete Your First Rehab Project 

It sounds like you are already half way through your first rehab?  Is a GC managing the project?  Did you get a breakdown on costs for each major scope?  If not, I'd ask to see a cost breakdown so you can learn how much you are spending on each scope of work on the project.

Ultimately, completing your first rehab project will require you to create a SOW, talk to contractors, compare and review bid proposals, review budgets, & make countless trips to Home Depot.

​You will inevitably make mistakes and underestimate things, but you will learn 90% of what you know by just doing your first rehab!