Estimating Rehab Costs
How would a begginer go about estimating rehab costs for their first few projects? i was thinking of just making up some number, getting the house under contract subject to inspection, then having contractors come in and bid on the project and trying to adjust the price afterwards according, and doing this a few times untill i get good at estimating the price right off the bat. Is there any better way to learn to estimate rehab costs?
Here is how I found out about the stuff I had no clues about:
LEARN YOUR BUILT IN TAPE MEASURES
my normal stride is a 3 foot stride
Hand stretched out from thumb tip to index finger tip is 8 inches
Arms stretched out finger tip to finger tip is 6 foot
One other I use sometimes is old tile flooring are 12 inches wide
Flooring: called a couple different carpet vinyl stores asked them how much a SQ YD they charged to install medium grade carpet / vinyl.
always round up to even number, easier on the brain
measure the rooms: example
10x12 ft room = 120 sq ft / devide by 9 to get yards = 13.3 sq yd x price from store to install.
Same technique for both carpet and vinyl
Roofing: once again call roofing companies and ask
Make up a couple of mock houses
1200 sqft rancher w/ 4/12 pitch
and ask what their rate per square is. ask how many squares that is and
I cant remember what a square measures so ask.
Drywall plug patch in my area goes for about $35 per
once again call a drywaller and ask how much to do a plug patch on a 6x6 hole ask about how much to overlay a 10x10 room with 3/8 inch drywall they will be able to give you general numbers.
Then make up some cheat sheets to help you along with some common measurements
This hopefully helps
[ Edited by jasonkanan on Date 06/18/2004 ]
I would advise you to seek other REI's in your local area, there may be a local group that you can find and get good info from them.
Accurately estimating construction cost requires quite a bit of knowledge and forethought. Obviously the more complicated the project the greater liklihood for error.
There are books written on the subject but I find them to be often be on the high side.
"Making up some number" would not be adviseable.
I have made my own spread sheets with material prices, as well as basic labor cost of certain items, that I keep updated every month. The trick is learning try to recoginize and place for the unforeseeable.
In rehabbing you can not go by square foot pricing all the time.....many times its a matter of time and labor.
Finding a legit handyman (one that is licensed and insured) can go along way in helping you obtain more accurate numbers.
Some rehabbers will get up with a Rehab GC (general contractor)in helping them estimate projects........this is fine as long as the GC is being compensated in some way.
Home Inspectors are another source of info however licensing boards have become very critical about HI's wearing multiple hats when conducting an inspection. Here in NC it is a quick way to lose your license..........in both fields.
Lastly, TCI has "experts" in many phases of REI..............be aware that not all advice is profitable........hanging out here long enough though will help who in determining who you can contact about various topics.
There are many ways to skin a cat (sorry people...Im not a cat fan).....you must figure what would work best for you based upon your needs at the present time.
good luck
NC_Yank
No matter how good you get at estimating costs---ALWAYS add a contingency factor, I use 10% (so it repairs come out to $10,000 I add another $1000). All the little unexpected stuff adds up in a hurry and there's no way you are going to see all of this stuff until you are actually at the property working on it for a while.
Misc expense on my last project (utilities, screen repair, replace door handles, bathroom accessories, etc.) was well over $1000.
Also don't forget to include closing costs if you are keeping the property and doing a cash out refi. Could be $2500 or more... :-o
thanks for the reply's guys, very helpful info