Quote from @Tommy Harper:
Quote from @Dan White:
Quote from @Austin Nix:
Hello Everyone! New investor here! Looking at properties online and have no idea how to estimate rehab costs. I’d like to have a general idea of how much rehab will costs before dragging a contractor to every property. Any tips/rules of thumb that you use to get a general idea?? Thank you
It’s a big question. It takes time to figure out and know rehab costs. I’ve been doing remodeling and budgeting for 20 years. I think I would send the property pics to your trusted contractor and have them give a quick range to update the home. Pay them something if you need to get a quick quote.
For example : a bathroom update is not the same regardless of size. Some can cost 2k and some can be 5k. Depends on demo and finishes and if the style needs to be changed.
Dan, sent you a message. But for readers, do you follow a per sq ft cost, or do you try to get more intimate w/ details (like that is how I as a interested part would kind of want to see things), material costs at least at a high level per section (drywall, kitchen and counter/cabinets, painting, bathroom fixtures/tiling, etc) and then have associated labor costs. Do you use these estimates for future purposes to basically become famliar w/ costs to the point where you might not have to ask anymore because you already have seen so many estimates? From your experience even if you have a trusted contractor, how much do you normally go over for total cost? How important is it to discuss specific details as to the finishes/styles, etc before a project is started, like how detailed do you want to get?
Materials are an important aspect for pricing. The labor will sometimes vary based on the material used. I think as you progress in your renovations- keeping track of past costs is a good practice to help with future pricing.
What we do is this :
Either my partner or I walk the home. We take a bunch of pictures. Knowing the sq feet from public record - we can easily estimate paint, carpet, and flooring. For example: you can ask most paint contractors over the phone to get a quote for this. 1800 sq foot townhome. 3 levels with minimal drywall repair - you will remember the pricing once you do it a few times.
If there is extensive drywall work - let your contractor know.
Whoever walked the home does an estimate and the other does one based on pictures and we come together to compare notes.
My partner was a novice when we got started but has picked up a good feel over time from actually seeing the renovations costs from completed projects. He is getting pretty accurate now but is has taken a couple years.
There are some tools including some here on BP that help but doing or having experience is best. I suggest getting a really good contractor that you work with on all these projects. After a few - you will get better at estimating and really dial it in.
My biggest suggestion is to overestimate costs initially by 10-20%. You will not catch everything on the first few.
feel free to reach out - more than happy to help
