Rehab Cost Estimate

[Nick Wehrley]

Hello Everyone,

The purpose of this post is to determine or get a rough estimate of rehab costs and some suggestions on what I should do regarding a couple circumstances with a potential house flip.

To start, the asking is $50k with an estimate ARV of 80k-100k (I know that's a big gap, waiting for complete ARV). The house is 3b2ba 1,500 sqft.

The flooring is good and would just need touched up, some water damage below one window, would need painted all the way through, and a couple pieces of siding are missing from the outside. The detached garage is sturdy but would need a new door and garage door.

The curveball for me about this property is they have completely closed off a small portion of the home. Put up a new wall, within that wall is new plumbing to a bathroom. No entry in the blocked off area but has 2 windows where you can see right into it from the outside. It’s meant to be the master bedroom I believe.

My questions: 1. What solutions are there regarding that blocked off area of the house? 2. The living room ceiling has a small crack across the entire room, patch or does it need replaced? 3. For the garage, could I remove the garage door and entry door and leave it more as a carport? 4. With all given information what are your thoughts on where I might end up with rehab costs?

If you have any other statements outside of my questions feel free to include

Thanks!

[Evan Polaski]

@Nick Wehrley, clearly I don't know the property or area. The last time I got through a renovation for under $15k was in 2011, and the renovation was to bring a property to section 8 rental standards, but even that was just under $15k.

For a flip that is selling to a retail buyer, I have never been under $40k in the last 5 years.  For reference, I had to replace a sewer line to the street on a city lot (about 30ft run from basement to street) and that was about $10k alone.  From my perspective, I would not take on this property.  A) I know I could not complete a rehab for 10-15k, and b) I want a 30K + profit potential, net of all selling costs, after I account for a well padded rehab budget and purchase price.