Renovation costs in 2022

Most investors have a hard time estimating renovation costs right now.

Thanks to inflation, high demand, and supply chain issues, renovation costs have risen substantially.

But, it’s not the end-all for us.

You can still achieve higher rents and the value of your properties are worth more when you renovate.

I’ve recently had a lot of conversations on estimating renovation costs and I’ve been sharing updates with my Inner Circle group. Now, I’m sharing them with you.

Here are some updated renovation estimates from an average budget across the 7 states where I own properties:

(Keep in mind, Washington state, California, and other high-cost-of living areas should be estimated at double these amounts.)

2 Bed 1 Bath Make Ready/Unit Turns $5000 - $7000

• Interior paint
• Some flooring/carpet replacement
• Cleaning

2 Bed 1 Bath Medium Renovations $9000 – average cost

• Interior paint
• Flooring throughout
• Cleaning
• Misc small updates such as light fixtures, wall patches, etc

2 bed 1 Bath Full Renovations $14,000 - $16,000

• Interior paint
• Flooring throughout
• Some appliances
• Sheetrock repairs/wall damage
• Small kitchen cabinets & countertops (laminate or butcher block)
• Some electrical repairs (switch and plug replacement)

Major system updates – On average we're spending $6000 to replace heat pumps and air conditioning units.

Believe it or not, these averages are pretty fair renovations costs. And despite the expense of these costs, you’ll still end up with properties that skyrocket in value.

Which is every investor’s dream.

If you’re looking to scale up and want support from me, my team, and our entire community, join the Inner Circle community today.