Rehab Costs Per Sq Ft?
was curious what the average cost is per sq ft is when rehabbing. I there
a formula I can use to see if I have a Winner?(taking into account major rehab is needed, although, not structural to my knowledge thus far)
Drywall, lighting fixtures, tubs, surrounds, cabinets counter tops, flooring, doors, lanscaping(cleanup and dressup landscaping)so dont take into account the landscaping please when advising.
There must be some sort of "safe" formula.......?
4500 sq ft home. all brick. converting from 4 family to SFR. 5 acre plot goes with it. asking is $139,000.
owners own it outright and its vacant currently.
After repairs I can expect about 300k+ or so in value.(per realtor)
I'm sure some people will tell you there is an average but from my experience nothing is average when building let alone remodeling. The best way to be sure of your cost is estimates and hiring an experienced general contractor. Good Luck
I was told it would cost 150K to remodel this 4500 sq ft home.......(not by a contractor, but by another rehabber)
This sounds so high......any thoughts....
You can figure ARV price per square foot by the homes in the area that have sold in the past year. Take the homes in the same area with the same house specifications....take say 15...throw out the high and low and average them out. This should give you a good idea. Subtract closing costs(both on purchase and sale) and repairs from this plus any payments you will have to make. Subtract your profit you are looking to make and get your cost.
Just an idea.
There is no average cost nor can you apply a certain formula, at least not that I am aware of.
Many people get confused with terms when it comes to residential construction.
New construction is the building from scratch.
Remodeling typically deals with redesigning rooms......such as kitchens and bathrooms. I put room additions in this catergory because of the need to tie back into the existing structure.
Rehabbing deals with repairing a neglected home. Some are cosmetic in nature, others are more indepth......even to the point where tear down is an option.
Rehabbing should not be confused with remodeling. They are not the same animal nor can you use an average square foot price to determine weather or not to buy. Rehabs must be treated on a case by case basis.
Basically you will have to become savy as to what something will cost to repair or .............just get bids.
Let me also say one more thing in regards to estimates. Square foot prices on new construction can vary greatly versus rehabbing or remodeling.
New construction is cheaper because it is clean easy work..........remodeling and rehabbing has more obstacles and time schedules to overcome.
One last thing.....just because a person has a contractors license does not mean they are good at all 3 phases of residential construction. Remodelers and Rehabbers should have a greater degree in knowledge and understanding of how a house is built and how the trades tie together.
NC
One of the hardest things about being a remodeling contractor is educating homeowners. I have to teach them the steps to the dance so that I can dance with them. People are always freaked when I tell them that I'm never interested in HOW MUCH stuff costs, but WHAT you are going to get for the money! What are you going to do? Specificity is always the name of the dance. WHAT are you going to get for HOW MUCH! Is it going to be gold plated, silver, stained hardwood, painted particle board... WHAT??
The trick really is, what do you need to do to the property to sell it.
If I could figure out a formula for Sq/Ft renovation I would be so rich that I wouldn't be posting here.
There are estimating guides that get published every year for both residential new construction and remodeling. I get them at Builders Book Source. You can get them at the library sometimes. You can get them as CDroms now too. The thing is, that they have modifiers for different areas of the country. I always used to laugh at the unit costs for things in these books because the basis would be for remodeling in the mid-west and they would say... triple that for California. Having experiential knowelege of costs in my area, I knew that the modifier was really times five. Still I use them sometimes for trades that I'm not really knowelegable about or for a double check.
Doing the work is always the easy part... figuring out what to do is what they pay you the big bucks for!