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Updated over 4 years ago on . Most recent reply

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Kevin Young
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What are Labor ONLY Costs?

Kevin Young
Posted

What percentage of the rehab budget does the labor make up? If I've put 60k in the rehab - how much of that 60k would be going to only the labor, vs going towards the materials? 

Thanks for any help.

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J Scott
  • Investor
  • Sarasota, FL
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J Scott
  • Investor
  • Sarasota, FL
ModeratorReplied

It depends on a lot of things...

- Are you buying materials or are your contractors?  For example, are you supplying the paint for the painters?  Are you buying the lumber and nails for the carpenters?  Are you providing the wire for the electricians?  Are you providing the roofing material for the roofers?

- What type of rehab are you doing?  If you're only doing cosmetic work, then a large percentage of the job will be finish materials, which you pay for.  If you're doing a lot of rough-in work, a large percentage of the job will be building materials, which are generally a smaller percentage of the cost and often are provided by the contractors.

- What level of finishes are you using?  If you're using very low-end finishes, the material cost is going to be a much smaller percentage of the job than if you use high-end finishes.

- What type of contractors are you using?  If you're using unskilled labor, your labor costs will be decreased.  If you're using a high-end GC, your labor costs will be increased.

Long story short, there's no good rule of thumb for labor versus materials (at least not in my experience).

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