All Forum Posts by: Kevin Burns
Kevin Burns has started 7 posts and replied 18 times.
Post: Fastest way to determine rehab costs?
- Investor
- Englewood, CO
- Posts 18
- Votes 1
Originally posted by @J Scott:
Originally posted by @Brian Fouts:
SF method. Light, medium, or heavy rehab. $10, $20, or $30 per SF. This is very rough, but can quickly tell you if it is worth proceeding or not.
$10 would be some paint and carpet.
I would disagree with ever trying to use this method until you've become an expert at estimating costs...
In general, costs will depend on:
- Location
- Type of house
- Level of finishes
- Type of contractor
- Your negotiating ability
- Time of year
- Lots of other stuff
The example above of $10/sf for paint and carpet may work in some areas, for some types of houses, with some contractors and some level of finishes. Or it may not.
For example, in Atlanta, on the types of houses I typically rehab and the types of contractors I typically use, I can do paint and carpet for half that (about $5.25/sf). For about $10-12/sf, I can do a complete cosmetic renovation, including paint, carpet, light fixtures, plumbing fixtures, cabinets, countertops and all door hardware.
But, when I try to do the same in Maryland or Wisconsin, I can easily spend double that.
In NY and California, where I'm getting ready to do a couple rehabs, I will probably spend 3x that.
If you know your area, know the types of houses and finishes you're accustomed to, know the types of contractors you'll use, etc., you may be able to estimate based on square footage, but for most place where I've rehabbed, it's taken 10-15 rehabs before I start to see the price patterns emerging.
@J Scott
Shot in the dark here. Do you happen to know anyone actively rehabbing in Denver, Co that would have some ballpark figures? It's booming out here so the prices should be lower because of the level of competition on the market, right? Or possibly with a shortage of contractors because it's so busy.... they may charge more? I guess it could go either way. Supply and demand.
Post: Fastest way to determine rehab costs?
- Investor
- Englewood, CO
- Posts 18
- Votes 1
Originally posted by @Trevor Ewen:
One of the things I have recently learned is how you can slice and dice your contractor relationships. We have one we use for walkthroughs and estimates, but we use a different one for the actual work.
The main reason is because the one who does our inspections doesn't really want to do build-outs. It's great to have multiple opinions, and he is always happy to do a day of walkthroughs with us, because he knows he won't have to do a ton of work in the next month.
@Trevor Ewen
So what do you typically pay a contractor for a walk through?
Post: Fastest way to determine rehab costs?
- Investor
- Englewood, CO
- Posts 18
- Votes 1
Originally posted by @Kyle Doney:
There's documents in the file place with estimates on rehab costs.
http://www.biggerpockets.com/search/files?utf8=%E2...
Or call contractors and ask for rough estimates on the stuff you need done. They should be able to ball park it if you give them a rough idea of what you need. ie- (1500 sq. ft. of painting).
If you get the deal under contract feel free to message me. I am looking for a new project.,
@Kyle,
Thanks for the info.
Post: Fastest way to determine rehab costs?
- Investor
- Englewood, CO
- Posts 18
- Votes 1
What is the fastest way to determine a rough estimate for painting, carpet, cabinets, countertops etc.? Trying to figure for wholesaling deal. Denver, Co
Post: 2 Properties 1 Price
- Investor
- Englewood, CO
- Posts 18
- Votes 1
I recently came across a 4bd/3ba that is next door to a Church(Church looks like it was converted from a house). The properties are being sold as one. The Church sits on 2 lots. The 4/3 could use a rehab but it's a solid home. They're being sold at market value so obviously the price will have to drop. I'm thinking of just doing a demo on the Church and building 2 new homes (I know it sounds horrible but it really doesn't look like a regular Church) I would rehab and cash flow on the 4/3. Is building new homes completely out of the question considering I won't be able to get the land for fairly cheap? Is there a general rule of thumb on land price/percentage for constructing new homes? They're asking $550,000 for the 2 properties on 3 lots. It sounds like they're willing to negotiate, I'm just waiting on the comps from a realtor buddy of mine.
Post: Would You Do This Deal?
- Investor
- Englewood, CO
- Posts 18
- Votes 1
Negative cash flow is never good. Hoping for long term success
Post: Home analysis and lender perspective
- Investor
- Englewood, CO
- Posts 18
- Votes 1
He said in his post he had a lease option that fell through. Then said because of the settling it wasn't a candidate for a conventional loan, Idk, maybe he attempted to sell and it didn't pan out. He's looking for cash offers. I haven't seen the house in person yet. I'm looking to see if it's worth a wholesale opportunity. Would a rehab investor consider it if he is going to more than likely be selling it to someone who will need a conventional loan? I guess someone could always buy it cash and do an owner carry. I'm new to this so still trying to find the best options
Post: Home analysis and lender perspective
- Investor
- Englewood, CO
- Posts 18
- Votes 1
I ran into a 90 year old property that has a foundation that's been settling. The current owner says it's not a candidate for a conventional loan. If the foundation was reinforced, would that change the bank's perspective on the property and loaning on it?