Need Help on Budget

[Derek T.]

Guys I am in need of some help with my SOW and budget for a property I am purchasing. The property is an older property (built in 1920) and I am picking up the property for $45k with an ARV at $180k. The problem is with the rehab numbers and SOW. It needs a lot along with the fact that I have to finish the basement to make it a 4/2.

The house is in rough shape and needs a ton of work however my budget is $70k on it and my GC came in at $85k. I have worked with him before and trust his numbers as all of his other estimates have been in line with my budgets. So I would like to keep the same GC as his quality is great and I trust him. So, I need some advice on how to cut some on this project; here is the budget...............

Demo- $2800
Roof- $4800 (fix roof on addition and raise roof in kitchen)
Gutters- $1200 (replace gutters)
Siding- $3500 (replace with new siding)
Exterior Doors- $1800 (replace 3 doors)
Shutters- $600 (add to front windows)
Exterior paint- $1500 (paint cinder block, trim, porch, columns, shed, etc)
Landscaping- $700
Windows- $3000 (replace all windows{14} except 3)
Walls- $2500 (open up 2 walls from living room, dining room and kitchen)
Drywall- $4500 (replace all ceilings, repair and patch as needed)
Rough Electrical- $4800 (bring up to code, install new outlets, GFCI and ARC fault breakers, move electrical in basement to free up ceiling space)
Finish Electrical- $1600 (replace all receptables, outlet covers, switches, switch covers, light fixtures, and ceiling fans)
Rough Plumbing- $3500 (replace water heater, relocate/replace plumbing to free up basement ceiling space)
Finish Plumbing- $700
HVAC Rough- $4500 (Replace oil heating furnace and add AC unit)
HVAC Finish- $400 (replace covers)
Ductwork- $2500 (add new ductwork, registers, and grills)
Kitchen- $10,000 (add bar style pennisula with cabinets, replace all cabinets, add grade A granite, create pantry, replace flooring, glass backsplash, new appliances)
Bathroom #1- $3500 (bathroom #1 remodel)
Bathroom #2- $4500 (basement bathroom creation with injector pump)
Interior Paint- $2200
Interior Doors- $600 (replace all with 6 panel)
Baseboards- $3500 (replace all baseboards)
Flooring- $4500 (replace with new hardwood)
Carpet- $600 (in basement family room and bedroom)
Finish Basement- $7500 (framing, insulation, drywall, trim, etc.)
Leveling Basement Flooring- $5300 (tear up concrete and relevel)

This is an older house with older doors, molding, finishes, etc.; nothing really has been updated. In my area new kitchens with granite are standard at the $180k price point along with remodeled bathrooms, siding on older homes, etc.

Where do you think I can help shave some from the budget but still maintain a great finished product? I was thinking keep the old baseboards (save $3500), no shutters (save $600), only replace 2 exterior doors (save $600), just paint gutters (save $1100), maybe scartch the backsplash and pantry (save $800), maybe do laminate instead of hardwood (save $2000), possibly don't open up the walls (save $2500) but I am hard pressed to find other ways. This will save another $8600 but I still need another $7-10k.

Is backsplash, replacing baseboards, adding shutters, replacing doors, etc. standard on your rehabs? Any thoughts on the budget?

[Steven Straughn]

The things that stick out to me are the baseboard and leveling the basement floor. I don't know how many linear feet of base you have, but let's assume 500. For $3,500 I'll fly out to Maryland in install that for you. $.75/lf for material, and a few bucks per foot to pain and install. Shouldn't be more than $2K total, and that's retail pricing. And just using the old ones will still cost you something. They need to be removed carefully, cleaned up, reinstalled, caulked/touched-up, and painted. I usually charge nearly the same price to reinstall existing base as I do to install new.

As for leveling the floor, why not leave the concrete and level via traditional means - grinding and leveling compound? I obviously don't know the particulars here, but I don't see why removal and repouring would be necessary.

More generally, I would recommend soliciting another bid. I understand that you want to use this GC, but in a business that's about the numbers as much as about the relationships, you need to make sure that you are not overpaying. Your GC might realize that you want to hire him and pad the numbers a little bit knowing that you'll be more likely to pay a higher price to work with him. Get another bid from a reputable contractor so that you have something to compare to. If it's lower, ask your GC if he has any room to lower his bid. Make it clear that you are not necessarily asking him to match the other bid because you value the relationship, as well as the peace of mind in using him. Or, look at the two bids and figure out what that's worth ahead of time. If they are $10K apart, maybe you're willing to split the difference to use your guy. He'll respect you for being willing to pay more for his work, and on future bids he'll know that his pencil needs to be a little sharper when bidding your jobs.