All Forum Posts by: Shankar Kantharaj

 @Shankar Kantharaj

Probably not, not  having done a rehab before.  After awhile you can start putting numbers to items you have done in the past.. like “ the tile  will cost $1.50/sqft and installation will cost $2/sqft.  Carpet has a number… a small bathroom has a number, cabinets cost $X/ cabinet as a ballpark.  So you can guesstimate somewhat… but until you get quotes you are just ballparking, which carries a fairly wide margin of error… but usually enough to know if there is any profit in a deal.

 But here’s the thing… my estimates are based on my contractors I used before… so they are of little help to you on your project.  Retail guys charge 3-5 times what a contractor working wholesale will charge… so there are so many variables you really need some quotes when getting started. I’ve written before that there are different types of contractors.  The ones that advertise on TV, drive fancy shiny wrapped vans and wear logo’ed shirts are catering to a higher end clientele ($$$$) versus the guy that drives the beat up pick-up truck but has done the job for 30 years.  The two will be priced very differently for probably the same quality job.   So it also depends on what ‘pond’ you are shopping in for your contractors. 

All the best!

Randy 

@Shankar Kantharaj

So if you are asking that question, it tells me things… that you don’t have experience in this space.  It’s not meant to be an offensive comment.  It’s meant to be a cautionary one.  Remember the first time you drove a car… not knowing how to use the brakes, how to coast to a stop, parallel park… that is you right now in real estate as to rehabs if I had to guess.  Rehabs on old buildings are like advanced rehabs…. And I would say ‘very dangerous’ for a beginner (dangerous as to screwing them up and getting screwed trying to pull them off and not lose your shirt!)

No one here can truly answer your question for you because we haven't seen the property or inspected the property, or had a contractor give us a quote, or run comps on similar properties… all the things you do to form an educated opinion on a flip / BRRRR.

I can tell you we set up a 1925 BRRRR and ended up $50,000 over budget just due to replacing the windows (believe it or not). The rule of thumb is that anything you touch has to be done to 2023 code. Let's just say things were done ‘a little bit differently' back in 1910-1925… so be careful what you touch!

By the books you will need permits from your city,  an architect to draw up plans, a general contractor to do the work, lots of inspections,  and down the line you go… “where you get to stop, nobody knows” to quote the old adage.   A remodel on an old property has a WHOLE LOT of question marks you sometimes can’t even answer until you start ripping stuff apart!  

I can’t help you much more without just saying “be careful” and “bring in someone experienced to help you through the process”.  Many of your answers start with the question, “What needs to be done?”  That will drive your cost answer… and no one here can answer that for you… will take boots on the ground there. 

All the best!

Randy

Be very careful when using LLCs due to the Canadian Revenue Agency's view of LLCs -