I am looking at purchasing a home that is 2000sqft with 3 bedrooms. It is fully gutted as is right now. No sheet rock and everything needs work. I am wondering if this is too much of a job. How much should I look at for a complete overhaul like this? Looking for a ball park figure. The home asking is 165 and comps are 230ish. I was looking at offering 85k. I guessed it at about 50k in repairs.
$30k-300k - That’s as good of a ball park figure your going to get with the info provided. If you’ve never done a major rehab and you think it’s going to be about $50k to bring it up to market standards, it’ll probably be about $75-80k. That’s just the renovation costs, you’ll have carrying costs (utilities, debt service, taxes, insurance, etc.), marketing/ closing costs (I always budget $10k for this), any miscellaneous costs like code inspections, permits, certificate of occupancy, etc.
I am going to look to assign this contract. Is there anything in the description I can give you guys in order to get a better ball park.
- all sheetrock not there , just studs
- ext siding is stable shape - needs paint job
- cracks in foundation
- plumbing ok
- electric overhaul
- new roof
- new kitchen
- new bathrooms
- new carpet
I think Danny has good info. Especially the part where ‘if you’re planning on 50, could be 75-80’. Plan for extra . . . it almost always costs more. But those are good numbers if you’re accurate in your summation of your local market.
And the carrying costs could be meaningful in a declining market and where inventories are rising in some areas already.
Sounds like a good project . . . what area are you in?
Keep us posted. I, for one, enjoy a good ‘rehab in progress’ story.
Without getting into very specific numbers, 2000 sq. feet (considering its a full gut job)
which means you need new everything including plumbing and electrical and roof. Your looking at aprox. $25,000 - $35,000+ (if you do the work yourself)
if your contracting out, double that figure. Just to give you a rough estimate.
What I do is get a clip board and go down to home depot and price everything out and then add it all up. (throw in an extra $5,000$ onto that because nothing ever goes smooth and you will probably come across atleast 1 catastrophy)
and if your contracting all the work out, grab the yellow pages. These guys will usualy give free estimates.
(dont always go with the cheapest guy in the book-- you get what you pay for) ask them for referances.
As far as it being ’ too much of a job ’ that all depends on your ability to get your hands dirty. Because I can assure you if you can operate a computer you can probably rehab a house. You may need to take a few nights to study a ’ do-it-yourself ’ book but so long as you have atleast one other person to help you it can be done with some will power. Worst case senario you learn something.
Sorry, I don’t want to be negative here but, " If you can operate a computer you can rehab a house" Yep, I’ll agree, but you are not going to make money doing it.
Forget Home Depot. Take measurements of all your interior walls/floors ceilings ect. and take some pictures. Go to a REAL LUMBER YARD. They will gladly do a professional “take off” for you. it will include everything you need minus Plumbing and electrical. You’ll need to sub that out so get those estimates right from the contractors doing the work.
AND MAKE SURE you get that foundation looked at, because EVERY home inspector that comes to that house is going to be all over that. You could be looking at a minor repair or a major undertaking. $$$$$
Take your time getting these numbers together and make sure they’re right, Understand that you will be tackling one of the toughest rehabs you can do. A major rehab like this is a tough way to start. I know guys who won’t even bother with this stuff because of the time and money it takes.
If you can steal it OK, but be careful. Sometimes you’re better with a project that is less involved. I say this because you state you have no experience and you’re looking at a very complex project for a beginner. That said… You can also learn a ton from something like this. It may not all be good but you will learn.
No matter how good you are you WILL spend more than you thought. Whether it’s holding costs because the market is slowed or a lower offer, extended holding time. Just be prepared for the unexpected.
The advice given is great advice.
It always costs more than you think.
I would guess about $90K to $100K…depending on the finishes.
Check the local economy. What I have found is that prices for labor are a lot cheaper in areas of higher unemployment…and you can actually get contractors to show up. In higher priced, areas where all of the contractors are super busy, they charge a lot higher prices…because they can.
In my area…the DC…inside the beltway area, I usually can count on about $85 per sq. ft. to do a full rehab. That is actually putting ceramic tile in the bathrooms, granite counters and stainless steel appliances in the kitchen, adding a bedroom and a bathroom.
I think that if you are not adding bathrooms and bedrooms, that can save a ton.
To Your Success,