Home Repair Cost Estimator (and Takeoff) Software Recommendation

[Robert Walden]

I've read a number of inquiries on this forum from investors asking for recommendations on "Cost Estimator" software for flips. Unfortunately, most of the replies I've seen on here tell people to read books, learn all they can, and develop their own spreadsheet. That may be good information. But, that's not really helpful in some situations. I've done several flips, and developed my own spreadsheets. But, they're not really efficient. The more complex my builds, the more time I find myself spending at the computer researching prices and crunching numbers! In fact, I lost a deal last year because it took me too long to modify hundreds of lines of pricing every time there was a Change Order, whether from my hard money investor or my contractor. Its become overwhelming! There's got to be an easier way!

While I understand that most of the off-the-shelf programs use a spreadsheet under the hood, I wonder if there's any added value or benefit to some of the more popular estimating or takeoff programs? I'm looking for something that easy to use and offers these features:
    a.) has a regional pricing database that can be updated with local prices,
    b.) is technically sophisticated, customizable, and flexible,
    c.) is affordable for a 2-person operation (around the $100./mo. price range or less),
    d.) is scalable, for when my business grows, and
    e.) OPTIONAL - has a suite of related features (such as soft money lenders, list of foreclosures and vacant properties, a CRM, automated marketing, etc.).

I've looked at Bigger Pockets' "Rehab Estimator" tool. And, while it certainly seems useful, especially for the investor that's just starting out, my impression is that its not as robust as some of the commercial products on the market!?! Is that a correct assumption? I've done considerable research the past few weeks. And, here's a list of the products I've reviewed that seem to hit the sweet spot between a small investor's needs and a corporate-sized platform:

Cost Estimator (and Takeoff) Software

    1. Rehab Estimator Calculator (Bigger Pockets tool) - FREE

    2. Houzz Pro Estimating Software - $99,/mo.

    3. Buildertrend - $99./mo.

    4. Xactimate Remodel (Verisk) - $50./mo. for Studio version (first year only)

    5. FlipSter System - $97./mo.

    6. REI/kit - $ 64./mo. for Marketing Starter; $104./mo. for Markting Success (includes more/better leads)

    7. Simsol Estimating Software - $100./mo.

    8. Clear Estimates - $59./mo.

    9. Autodesk Takeoff - $104./mo. to $155./mo.

For Apple users only....

    10. Property Fixer (Apple devices only) - $20./mo.

    11. Property Evaluator (Apple devices only) - $20./mo.

At the very least, I've provided a curated list of what appears to be some of the leading software in this market. All of these have their own , and weaknesses. A few were recommended by Bigger Pocket members; two by an insurance adjuster who's also an investor. But, several appear to be geared more toward wholesaling rather than renovations or multi-strategy. And, some appear to be more for contractor Takeoffs. (I'm not sure if there's a difference between the usefulness of Takeoff software for rehab estimating or not!?! Please explain.) Has anyone used any of these programs, or have any opinions about them? And suggestions about these or other solutions to my problem would be greatly appreciated, so I can spend more time finding and flipping houses, and less time being an accountant!

Thanks in advance for any input or advice you might offer!    :-)

[David Robertson]

Hi Robert,

It looks like you've done extensive research on the current estimating software offerings available.  Here's my thoughts and feedback on your needs and lists.

a.) has a regional pricing database that can be updated with local prices,

Yes, the estimating tool should provide you with estimate templates that include price ranges to help get you started, but ultimately you should be creating your own pricing database with your own prices that fit your specific market and materials you will be using on your projects.  Now that you have a couple of flips under you belt, you should have a good understanding of what stuff costs and be creating your own database.

b.) is technically sophisticated, customizable, and flexible,

The great thing about spreadsheets is that they are completely customizable and flexible, so that is why many investors recommend spreadsheets to handle the estimating process.  The estimating software should be as customizable as a spreadsheet.  You should be able to customize EVERTYTHING (categories, repair items, prices, descriptions) add/delete rows, easily drag-and-drop rows to re-order to tailor your estimate exactly how you need it.

c.) is affordable for a 2-person operation (around the $100./mo. price range or less),

That's a reasonable budget, but can certainly find options for cheaper

d.) is scalable, for when my business grows, and

If you want to scale your business and grow your team, the estimating software should allow you to add multiple team members to your software account so your entire team can create estimates and collaborate on projects.

e.) OPTIONAL - has a suite of related features (such as soft money lenders, list of foreclosures and vacant properties, a CRM, automated marketing, etc.).

Some of the companies you listed like BuilderTrend, Xactimate, Houzz, Clear Estimates, Simsol, Autodesk are softwares for contractors/remodeling companies and not built specifically for the house flipping/rehabbing niche, so they will not have all or any of the related lead management, deal analysis, functionality you are looking for.

Other Considerations

(f) Ability to Save Templates for Future Projects
Once you get done customizing your estimate you should be able to save your estimate as a template that you can re-use on future projects.

(h) Ability to Create Estimate Reports

All of the data that you enter into your estimate should be used to generate a professional, printer friendly shareable estimate report that you can use to share the SOW and budget with your business partners and lenders.

(i) Ability to create a Scope of Work document for your Contractors

All of your estimate data can also be used to generate a Scope of Work document telling your contractors exactly what scope they need to include in their bid proposal.

(j) Ability to select project materials and create Material List Report

You should be able to assign material SKUs directly to your estimate items which will be used to generate a project material list that you can use to shop for materials.

(k) Ability to Track Contractor Bids

Once you receive bids from your Contractors you should be able to track your Contractor bids directly in the estimating tool so you can evaluate the best bid and use their number in your estimate. 

(l) Ability to Track Your Actual Expenses Against Your Budget

Once you get the property under contract you should be able to compare your actual expenses to your initial estimate so you can manage your budget and forecast profitability before it's too late.

Tool Feedback

Here's some feedback on the tools you researched.

1. Rehab Estimator Calculator (Bigger Pockets tool) - FREE

- Doesn't provide pricing, not detailed enough, not flexible enough, can't save templates, can't assign materials, can't create SOW...not really a software platform that is scalable.

2. Houzz Pro Estimating Software - $99,/mo.

- Built for contractors and remodelers, so won't have the niche flip/rehabbing tools.  

3. Buildertrend - $99./mo.

- Built for contractors and remodelers, so won't have the niche flip/rehabbing tools or template.  Also, it's way more expensive than $99/month, its probably more like $250 to $500/month

4. Xactimate Remodel (Verisk) - $50./mo. for Studio version (first year only)

- Built for insurance companies/contractors and remodelers, so won't have the niche flip/rehabbing tools or templates.

5. FlipSter System - $97./mo.

- Built for flipping niche, but not flexible enough, can't save templates, can't assign materials, can't create SOW.  I also generally don't like their marketing tactics upselling you on guru real estate programs.

6. REI/kit - $ 64./mo. for Marketing Starter; $104./mo. for Markting Success (includes more/better leads)

- Built for flipping niche and could be a good option, but I'm not sure how flexible it is or whether you can assign materials, create SOW, etc.  Also doesn't have project management tools for managing or tracking on-going projects.

7. Simsol Estimating Software - $100./mo.

- Never heard of this, website is currently down so can't research.

8. Clear Estimates - $59./mo.

- Built for insurance companies/contractors and remodelers, so won't have the niche flip/rehabbing tools or templates.

9. Autodesk Takeoff - $104./mo. to $155./mo.

- Appears to be built for large commercial general contractors that utilizes CAD drawings and 3D CAD files to perform takeoffs.  This type of software would not be useful for a flip project that won't have 3D CAD drawings.