All Forum Posts by: Clayton Mobley

Seems like it all depends on your time horizon. From a business sense, it sounds like you think it would be better to sell now, so you can build your buy and hold portfolio even more. If you truly think you could find a couple of similar deals in the same area that would be my vote.

This is one we have in Birmingham, AL. It was destroyed when we purchased it but looks pretty good after the remodel. We have about $74K in this one total, and it rents for $1100/mth.

Douglas,

We've developed some economies of scale and definitely a lot of buying power with our contractors due to the number of renovations we do, but I would assume our model ("contract everything out at the best price and highest quality possible") is very similar to your business. You may not be able to get the same prices we do, but these are some of our baseline contractor prices to do the following complete renovations to these respective areas:

• Complete Kitchen Remodel: $3,500 (refinish existing cabinets, install ceramic tile flooring, new Formica countertops, new stainless sink with new brushed nickel faucet, new cabinet fixtures, new basic light fixtures, other basic repairs, and all labor included - does not include appliances).
• Basic Stainless Steel Appliance Package: $2,500 (frig, stove/oven combo, vent hood, dishwasher, with labor to install - we do not include microwave)
• New Roof: $4,000 (new tin roof - prices vary greatly depending on # of squares area on the roof)
• New Carpet: $2,000 (includes new pad with aprox. carpeted area of about 1000 sq. ft.)
• Bathroom Remodel: $2,500 (new ceramic tile shower stall, new ceramic tile flooring, new vanity, mirror, light fixtures, sink, and faucet fixture)
• Paint Interior: $3,000 (includes painting and some general drywall/finishing prep work)
• New Vinyl Siding: $3,500 (covering existing cladding with vinyl siding)
• Paint Exterior: $2,000 (2 coats of exterior paint, minimal prep work)

All of these are VERY basic estimates based on a house with 1400 square feet of total interior space. You can make adjustments to the house in question by dividing the above prices by 1400 and then multiplying by the number of square feet in your subject house. Again, these prices are very basic, and there is really no substitution for pulling a tape measure on each space and plugging your metrics into a more sophisticated estimation model.

Please remember that these costs vary a greatly by region, and our company also receives excellent pricing because of its size. If you subcontract some of this work out yourself, hopefully you can find comparable pricing. Prices could be completely different where you are, but at the very least, I would recommend increasing these prices by 30-50% to be safe in your estimations.

Good Luck,

Clayton