How to estimate rehabs in under 10 minutes

There are 3 type of rehabs that exist. If you can simply identify what type of rehab a property needs and its sqft you can figure out the cost.  These numbers are relevant for medium income communities where the houses are selling for 200k to 400k.

Light rehabs cost $20 to $25 a sqft. and it will cover the cost to paint the property, replace the flooring with new carpet or hardwood floors, tile and clean out of the kitchen and bathroom.

Medium rehabs cost 30 to $35 a sqft. will covers all of the above plus the cost of a new kitchen and all new bathrooms + a new roof or furnace.

Gut rehabs cost 50 to $55 a sqft will cover all of the above plus new electrical, plumbing and Sheetrock.

New Construction is 95 to $105 a sqft + Includes all of the above

So say for example the house is 3000 sqft and its a light rehab, 3000 sqft x $25 a sqft = 75k to do a light rehab.

Simply said, figure out what kind of rehab the property needs through photos of the property.  Figure out its sqft and you will be able to estimated cost to renovate without visiting the property.  We buy 50+ houses a year base on this model and these numbers.  Once we get a counter back from the seller we physically go out and look at the house.  Once we see it we’ll make our adjustments to close the deal.

We operate our business this way because if you had to go see 100+ houses and then make offers, by the time you do you’ll get all the houses confused and so tired you want out of the business.

For houses in price ranges of $400 to $600k add $10 to all of the above numbers.  Subtract $10 a sqft if it is a property between the ranges of 50 to 200k.

Nick Tang

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