Fri, Jul 03, 2009
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Estimating Rehab Cost |
1ezsell
16 Posts
Member Since: 02/02/2008
Summerville, SC
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Posted: 18:58 on 02-02-2008
I have been a successful bird dog for some time now and I'm ready to take the next step into wholesaling. I have a good feel for marketing, negotiating, and doing the paperwork. My weakness however and I must say a big weakness is in determining the cost of repairs. In you all opinions what can I do to speed up this learning curve as I know it's a steep one. As you all know this is critical and to be frank this one step alone is what I fear the most. Any help will be greatly appreciated. Thanks in advance.
1ezsell
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ypochris
2200 Posts
Member Since: 03/22/2006
Lansing, MI
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Posted: 20:20 on 02-02-2008
Ouch! I never get it right. It is more like I set a limit on what I will put into it and try to spend as little as possible over that. What always happens is I start out everything top notch, then cut corners as my budget dwindles. My current project looks like it is going to be the worst- I budgeted a total of $72,500 and it looks more like it is going to be $80K. On the bright side it will be worth $125-150K when it is done. But too expensive for a rental, so it may be my first flip- if I don't move in instead!
If you are actually going to do the rehab, and plan on using contractors, they will bid it for you. But if you don't use them it is tough to get them to do it a second time...
Anyway this was a gut rehab for a three storey, four bedroom, three bath house. Left ceiling and original woodwork on first floor, but have to build a large dormer above stairs to third floor for headroom and rebuild a huge chimney so it kind of balances out in total work. Contracted out windows, drains, and rough electric. Already gutted, so that saved some work, but all the pipes had been stolen (copper). Budgeted $27,500 but now expect to spend $35K- mostly because of contractor costs. Other labor all $10/hr.
Not sure that is helpful- hiring contractors would have cost much more.
Chris
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lwines
15 Posts
Member Since: 03/13/2007
Centreville, VA
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Posted: 12:15 on 02-03-2008
Chris,
who did your gutting and how much did it cost?
I have a similar project that I am about to begin. This is my 3rd and I can see now there is more I need to do than when I purchased it a few months ago.
Can you share your itemized estimates? I want to see that i'm on a better path this time. The other two I was winging it.
I'm looking at this 5 bedroom being worth around 130k and listing it.
thanks
Lara
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On 2008-02-02 20:20, ypochris wrote:
Ouch! I never get it right. It is more like I set a limit on what I will put into it and try to spend as little as possible over that. What always happens is I start out everything top notch, then cut corners as my budget dwindles. My current project looks like it is going to be the worst- I budgeted a total of $72,500 and it looks more like it is going to be $80K. On the bright side it will be worth $125-150K when it is done. But too expensive for a rental, so it may be my first flip- if I don't move in instead!
If you are actually going to do the rehab, and plan on using contractors, they will bid it for you. But if you don't use them it is tough to get them to do it a second time...
Anyway this was a gut rehab for a three storey, four bedroom, three bath house. Left ceiling and original woodwork on first floor, but have to build a large dormer above stairs to third floor for headroom and rebuild a huge chimney so it kind of balances out in total work. Contracted out windows, drains, and rough electric. Already gutted, so that saved some work, but all the pipes had been stolen (copper). Budgeted $27,500 but now expect to spend $35K- mostly because of contractor costs. Other labor all $10/hr.
Not sure that is helpful- hiring contractors would have cost much more.
Chris
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ypochris
2200 Posts
Member Since: 03/22/2006
Lansing, MI
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Posted: 10:08 on 02-04-2008
The property was gutted by the previous owner, and substantial foundation work done (well). But when they started on the drywall they did a reallly poor job, and the owner got into a dispute with the contractor- wouldn't pay them, and I don't blame her as I have ripped out almost everything they did and wish I had ripped out it all- uneven walls behind, no support at the base, no mud behind the tape, two inch gaps from poor cutting, numerous holes in every sheet from who knows what. Luckily they didn't get far! And my electrician ripped out all the electrical work they did, and all the copper pipes were stolen, so essentially it was starting from the gut except for the extensive foundation work.. Anyway the owner died right after this and the heirs live a thousand miles away and didn't want to deal with it, so it became my problem.
Tied up in tax returns right now and don't really have time to type out my costs/estimates- sorry...
Chris
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