[Greg Christiansen]

Greg Christiansen

Jackie takes the square footage of the property and multiplies that by everything that needs work (ex. carpet, indoor paint, electrical fixtures, etc). It is very basic, but it gives you an idea. If it is really a mess, she tacks on a few more thousand.

[Steve Coleman]

Steve Coleman

I remember discussion of an easy way to estimate the cost of a rehab. but just cant locate it now. I am looking at 2bedroom condo that will need a complete new interior. Floors, walls, fixtures. basically gutted. How do I arrive at a number to see if the deal COULD work?

Thanks
Steve-0

[Bud]

Bud

Could you explain that formula a bit better?

Roy
WA STate

[Greg Christiansen]

Greg Christiansen

Square footage of house = 1200

Inside paint =$1200
New bathroom =$1200
New electrical =$1200
New A/C =$1200
New carpet = $1200
Misc=$1200

Total rehab cost $7200

Obviously if it is a more high end home, you may need to double or triple this method.

[Vic Huerta]

Vic Huerta

Spend 1 whole day at the property and get bids on the work if you do not know any skilled labor or GC’s. When I started out I booked a painter at 9am, carpet at 10am, painter at 11am, another carpet guy at 12, lunch, then do it agian for tile, carpet and paint in the afternoon. Three quotes are good enough for each job. You might be able to find a GC who can do it all and might even be cheaper because they get the whole job.

Make sure you know the square footage on what you want done and don’t forget to ask: “Is this the best you can do?” Labor is cheap right now, people are starving for work!

Now for cost on things. Make a list on what you need for the rehab and go to Home Depot and write all the skew #’s and prices then you can calculate what your material cost is. Home Depot has a renovation order form already that most contractors use to renovate houses. Don’t forget to open up a commercial account to make things easier for you to track you expenses.

Hope this helps!