Importance of Nailing the Rehab Costs!

[Account Closed]

This recent flip I posted about yesterday in San Antonio showed me how really important it is to work with experienced people who nail the rehab costs. Ever had a rehab go 100% over budget? I sure have!

Total rehab: $17,270 (estimated was $18k and change)

The numbers on this deal:

Purchase Price: $72,000 cash

Rehab Costs:

• Kitchen Granite: $1300
• HVAC upgrade: $500
• Electric Fixtures: $800
• Interior finish: $2300
• Bathroom: $800
• New floors: $2800
• Dumpster: $1000
• Deck: $3000
• Microwave oven and elec: $600
• Rotten wood removal: $895
• Deck stain: $595
• New sod: $1795
• Shutters: $295
• Concrete stain: $495
• Mail box: $95

Total rehab: $17,270 (estimated was $18k and change)

Total cost: $89,270

Sold price: $115,000

Profit: ~$25,730 (after soft costs it should come out to around 20k, need to figure those)

DOM: 150

They really nailed the rehab budget and for that I give them credit. They told me they had done several hundred rehabs and flips; I thought maybe it was marketinng BS, but yeah it worked out just about right.