What are rehab costs for Denver these days?

Question

Hi fearless BP community. I’ve been a rental investor for a while and gotten great information out of here. I am now making a personal move to Denver. Online sources of information are hard to find and am trying to get a sense of what a gut and rebuild might cost for my future home. Does anyone have a resource link, general $/sqft, or cost by type (kitchen, master bath, etc) that could help me assess what to budget? I know it’s competitive these days so won’t be cheap :(

I’m currently looking at 3-4 bedroom homes, 2,000 to 3,000 square feet, south east of Denver downtown area.

Thanks!

I’m currently looking at 3-4 bedroom homes, 2,000 to 3,000 square feet, south east of Denver downtown area.

Thanks!

Matthew Osborne · Answer

I would agree with @Matt M. I personally would add about another $25k on that estimate due to unforeseen issues (remediation, foundation problems, material cost/availability, etc ). I see a lot of structural problems due to our expansive soils and poor drainage. FYI there are contractors in the Denver area that will give you a free estimate on if there needs to be any foundation work done. How much if any work will you be doing yourself?

Steve K. · Answer

If you have to ask... you can't afford it. Just kidding, but that's kind of how contractors are acting these days. There's no way to give you any ballpark numbers on anything without more info. The range to build here is anywhere from $100-500 per square foot. Depends on the level of finishes, scope of work, cost of materials (which have gone up 300% just this year and contractors won't even give bids these days because they have no idea on material costs). I've seen bathrooms that cost between $5-75k, and kitchens between $15-250k. So it really depends on what you want to do.

Jeff White · Answer

@Martin Rydder Hi Martin, I'm a local Denver investor. To answer your questions, it really depends on the scale and scope. Since you are coming from San Fran, labor costs are definitely cheaper here, but material costs are about the same.

It depends on what type of project that you are getting yourself into. Are you planning for a true fix and flip investment property?  Cosmetic rehab?  Something else?

Also, what's your budget for purchasing your home?  Are you looking to house hack or more of a live in flip or fix and flip or BRRRR strategy?

Weston Bovee · Answer

Welcome to the best place to live, Martin!

I am a total novice when it comes to RE Investing, but I'm looking to take the plunge soon, I just don't know the avenue I want to take but that's a story for a different thread...

I recently renovated my house in Arvada (Northwest Suburb between Denver and Boulder) and we spent about $35k, here is a list of specs:

2000sq ft 3 bedroom Trilevel built in '73, redid main living area of about 1100sq ft.  Took down non-load bearing wall, added/framed a new bathroom, all new electrical, fixtures, appliances, stone countertops, 1100 sq ft of luxury vinyl plank flooring, paint, and new furniture for two main living spaces.

I spent $1200 on a drywall crew, $5000 for plumbing (had to dig up slab and replace main), $2700 for new chimney, $500 for a structural engineer and $400 for help from my electrician buddy.  We did all of the framing, finishing, floors, carpentry, etc.

That came out to be about $32/sqft with us doing a majority of the labor so if you are going to hire a GC or sub your own specialists, it could definitely been in the realm of what Matt M was mentioning.

Hopefully this gives you a bit of a baseline?  Good luck.

Matt M. · Answer

A home that size is anywhere from $75k-$125k to rehab depending on finished.

Catie Lawrence · Answer

@Martin Rydder I’m sure you’re aware - but Denver market is nuts!

I’m an investor/flipper (Arvada/Lakewood/Denver)  - and are finding certain properties to be in the upwards of $700 sqft - now that’s not everywhere, but dang!

Agree with other comments - scope, size of property, finishes, will all come into play. Good luck & reach out with any other questions!!

Matt M. · Answer

Kitchen, few baths, doors/trim, paint, flooring, major mechanical, windows, possibly roof and landscaping. Some lite structure.

Martin Rydder · Answer

Helpful answers and totally fair follow up questions.  In principle I'm hoping to find an opportunity that's a "fix and live", basically all the same work except the "flip part". I understand the finish makes a big difference and have also heard the availability and competition for workers is high.  This is actually why I'm having trouble estimating what a current project would look like locally (I don't actually arrive there until next month).

@Matt M, I'm curious when you estimate $75k-125k, what kind of work do you factor into that?

What are rehab costs for Denver these days?

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