This week, we’re going to talk quoting rehab. When you go check out a house for the first time, you will need to do a quick walkthrough rehab estimate. In my case, when I get a house on my radar and go check it out, I spend ten minutes in the house at most and add up rough estimates of the numbers in my head–it’s not scientific, but it gives me a ballpark of what the rehab would cost. I’ve done this for many years, so my quick estimates are generally pretty spot on. I want to explain to you how I do this.
Today we’re going to talk about estimating the rehab for the interior of a property.
Remember, I’m not a licensed plumber or electrician–what I’m doing is walking through and using my experienced eye to estimate quickly and efficiently what it’s going to take to renovate the house in terms of cost and timing. I am also now starting to train my realtor to look a houses like I do so that when he’s making offers on my behalf, he’s doing so with educated numbers.
The inside of a house is really where you’re making your money. It needs to look really good in order for you to make money.
Here are the key things I estimate as I go through:
- I’m going to paint the walls. That will be about $1.50/sq foot.
- I’m going to change out the flooring (either replacing it or sanding and staining it). That will be about $3-$4/sq foot.
- Every piece of hardware (doorhandles, light fixtures, kitchens and bathrooms) will be replaced. Kitchens (tile, cabinets, appliances) normally will cost me around $5,000. Bear in mind that tours usually start and end with the kitchen, so it’s really going to make an impression. Bathrooms, if they’re being completely replaced, will cost around $2,000. Light fixtures and doorhandles will cost around another $500.
- Every door and closet door will be replaced. That’s usually around $100/door.
- Assuming the electric panel is up to code, I will throw in another $2,000 for plumbing and electrical.
- Anything else unusual that might need to be changed: wall configurations, room transitions, etc.
For a roughly 1,000 square foot house, which is what I primarily deal with, the costs for the inside usually add up to about $15,000. Even though I generally come up with around $15,000, I like to be thorough as I go through a house. I might even be pleasantly surprised!
Tomorrow we’re going to talk about adding the costs for the interior and exterior together and making any final adjustments.