Updated almost 5 years ago on . Most recent reply
Cost per square foot - BRRRR
As a new investor looking at Philly area BRRRRs I'm trying to get better at quick calculations to analyze deals. The big unknown is rehab costs. Does anyone have an approximate $/sqft range that they generally use? I understand there's a ton of factors that go into this, but a bottom and top range would be very useful.
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@Jack Korbutov Generally from what my contractors have used is the range of $110-140 per sqft. Now in your case of keeping something to BRRRR, I would stay on the lower side of that range as your not going to be putting super high-end finishes into your rehabs.
That being said, with the price of lumber skyrocketing, those numbers could go up in the near future. I would always build into your budget some wiggle room for unseen problems that could occur to be safe until you have a few underneath your belt.
Hope this helped!