Estimating Rehab Costs

[Michael Russell]

Hello all,

I am a new investor looking for my first property; I am looking to do a combination of BRRRR and house hack.

I have found a triplex in my area of Stockton. Unfortunately, it was damaged in a fire, and two of the three units have been striped down to the studs while the one unit is still tenant occupied.  In order for those units to be livable, they need everything from drywall to kitchen cabinets to bath tubs.

2 units are 900 sq ft with 2 beds and 1 bath each. These were the units damaged and need total rehab.

1 unit is 1100 with 3 beds and 2 baths.

What do you estimate the cost would be to rehab those 2 900 sq ft units?

[David Avery]

P.S.  when there has been a fire generally the city is involved, that means everything needs to bring brought up to current codes.  I don't think your first deal should be this.  It is very hard to do because it is like building 2 new houses.  Sometimes it is even harder!!!

My first deal was a burn out, I bought it for 14,000.  But here is the catch, I paid $1 and then the $13,999 when I sold it,  It cost me about $30,000 and sold it and make $27,000. I was a punk 23 year old kid in the late 70's.

I had to deal with city inspectors and do everything to what they said.  What a hassle!!!

Permit for everything!!!  sometimes they would re schedule and then the property/project got delayed.

Unless you buying this for pennies on the dollar, I would re consider your first deal doing this!

The owner most likely got 70% of total value in a check.  But the owner still has to deal with 2 units basically un safe etc for months, and demo of same is a lot of cash to remove.