Figuring Numbers For Rehabing
Hi,
I am trying to learn what repairs cost so I can have a somewhat accurate estimate to give to a rehaber for flipping a property to them.
Here lies my question...
How do I know what all type of repairs/replacements an investor will do aside from the obvious? I am looking at a 1955 single story, pier and beam house that needs updating but there are no windows missing, no wholes in walls or floors... It has foundation problems, per the cracks in the walls, but will a rehaber just patch the drywall or fix the foundation (in Tx, we all have foundation problems)? How do I know what to count on for rehab costs? I think the house has all original stuff. I know it will need updated paint, carpet... The kitchen has vinyl flooring- will a rehaber replace it with vinyl or update with tile and do I need to figure tiling into the rehab costs?
I hope I have explained myself. Basically, how far will a rehaber go to update a house and should I include repair/cosmetic costs that I would place?
Thanks! 
you should ask them what they want to update/fix/replace. they need to somewhat itemize what they plan on doing and justify the costs to do them. don't try to guess what they'll do because you'll be wrong 100% of the time. some will ask you for replacement money, and just repair things - i know b/c i've done it myself. haha.
then check up on the progress if you're close by. they may not like this but at least you know if they're on schedule and doing what they told you they would.
Hi,
As I understand it, to what extent a rehabber fixes/repairs/or replaces has a great deal to do with their end purpose, in other words, are they going to rent it out, or sell it outright. I know one rehabber who takes pride in making his rehabs top notch but always gets fmv and above. Others do as little as possible ( I disagree with this because I have bought 2 houses at fmv only to discover major problems that have been covered up, hidden long enough to sell it). I personally think that this is dishonest and would not conduct my business in that manner. I would want my word of mouth referrals to be good instead of them telling folks : Yeah, we really got ripped off.
As far as telling someone you are going to do work you have no intention of doing...Also dishonest. you will make more money in the long run from a solid honest reputation then deceiving people to make a fast (big) buck.
There is a difference between making it a win win situation for everyone and taking advantage of a new investor.
One more thought....many of the rehabbers I know say 30k for complete rehab. But they replace everything. Electrical,heating, air, drywall,plumbing etc. They even put all new kitchen and batn from gut stage.
Thats my input for what it is worth
Barb
If you have foundation problems, all bets are off when you ask for a quote. Correcting a bad foundation could cost as much as $ 40K or as little as 100 bucks for some caulk and paint. The choice is yours. Be careful, if you're not savy to the problem.
go to book store buy book (building cost estimstor) it also has computer software that comes with it. i use to be a contractor did all of my bibs with this soft ware. hope this helps.