Estimating Rehab Costs 2018 | Wholesaling Real Estate

Estimating Rehab Costs 2018 | Wholesaling Real Estate

Makes it vote ya know. I was like, oh boy So we’re in the second flip of the month the one in the hundred K video and this house are Expected to complete in three weeks So we wanted to walk you guys through this property and we’ll have Chris kind of go over how to calculate rehab so that you guys can get a good sense of what you’re looking for and how Much it could cost you so whether your whole selling or you’re fixing flipping you can get a good gauge on What you’re gonna be spending or what the end buyer is gonna be spending. We’re picking up on this one about three days into the Lower hand property you can just flow apparently now to make it look like drywall which saves you time. We’re gonna keep these floors They got paint on Yes you guys to see Really a basic cosmetic something like this you want to estimate about $15 per square foot for your rehab because the guts of the house is good. You’re really going if you’re doing things like kitchen Bathrooms want to go 25 or $30 per square foot good to see and if it’s something where you got to get it back to The studs you want to go at least forty to forty five dollars depending on the market you’re in Anything above that is going to be just a select of the finishes that you want after you get through How high and you want to go with? This is a basic three one really cookie cutter house Big-ticket item that you’re going to look for when you’re flipping is the roof As well look at the ceiling for leaks The a/c system there’s always a big-ticket item or the foundation. You want to make sure the foundation is level You don’t have a lot of issues because when you start jacking with that you come up with a lot of unforeseen costs with the house level Those are the really big ticket item other things. You always got to calculate it for or little things You may forget about like the how to tell me I was in a house of switches The light fixtures how high-end you want to go with that stuff the kitchen appliances all those things Well people forget about when they’re calculating the cost of over a half Bathrooms and a low-end house you want to budget for about seven five? to Ten thousand depend on the size of the bathroom you can get away with patches on bathrooms About three or four grand. If you really need to you can refinish tub. You can do things like that I’m kitchen Joe always want to budget five to fifteen thousand depending on the size of the kitchen the amount of countertop to type of contacts you Want to put in so it all varies but these are just general numbers you can use to start out with That’ll give you a good conservative estimate what it’s gonna cost the rehab property So let’s kind of figure out like for this house. We want to use this an example for you guys This is a thousand and eighty one square feet, right? so Chris how if a wholesaler would have walked this property and Want to purchase the property from the seller do a rough estimate of what the rehab would cost if it looks like that Good structure, like don’t don’t look at the aesthetics. I’m look at how pretty it is or ugly It is what the wall paint doesn’t match up as wallpaper If the walls look sturdy if the floor feels level and it’s like you can just rip that out and then redo it You want to budget? Ten to fifteen dollars per square foot for that and that would give you a good base case for in any rehab now what’s gonna happen is an investor is gonna come back and Say no I think you’re gonna cost me $18 word for it and they cost me twelve but you’ll be in the ballpark of where They feel comfortable with the numbers you’ve given it, but you’re not just pulling she got your hands And so you guys don’t even have to overthink it just try to estimate it to the best of your knowledge and the buyer will come back and kind of give you some some insight on what they really think it’s worth and they’ll have their contractors walk the property so don’t let Rehab stop you guys from taking action and getting properties in a contract So you can always go back to the seller and renegotiate the price – each investor has their own contractor those contractors charge different prices. So someone may have a contract. It is really really really inexpensive Somebody ever have an expensive contractor, but they like them because they trust them and they don’t have that they more quickly So those budget numbers are always going to fluctuate and if you’re trying to get it exact for every investment You’re gonna you’re gonna run yourself crazy. So just get a good ballpark number for that stuff and then get you to universities That didn’t give me feedback on the price Tax delinquents, have you have you downloaded that list? Okay, so what I’ll do is I’ll email you Where we get our tax delinquent list form You can actually just go on the site and download the list directly from the county Maybe I’ll send you that Lincoln and you could utilize that list as well and mail to that and also do your driving for dollars Notice this property. Can you tell me a little bit about oh you’re interested in selling it and You know, there’s some people say hell no, they’ll call me again. Some people will say I never thought about it Some people will give your name that’s astronomical some people may say yes, let’s talk and they may have some common sense, right? so it’s just This is general conversation. They say yeah, I’m interested. Then you start asking general questions. How much do you owe on it? You know? Do you know why is it vacant can send a little bit about that situation? And on any deal you have if you have anything you can’t You can’t skip trace or whatever we’ll figure it out, you know, we’ll just put the proper together I appreciate you donating your time. I’ll send you an email this week, man, and we’ll be in touch

7 thoughts on “Estimating Rehab Costs 2018 | Wholesaling Real Estate”

  1. Estimating Rehab Costs: In this Video we will cover how to estimate rehab cost (repair cost) and we will walk a property that we are currently doing a Fix and Flip on and show you real life examples. Make sure you subscribe and hit that notification bell to see the next video for the before and after of the flips we are working on.

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