I’m considering getting into rehab projects for resale. I currently only have a couple of rentals but am considering doing some flips to generate cash. I’m studying every aspect of it, I understand that no matter what the property has to be bought at the right price (aka. deep discount).
Having not done it before, I don’t know how far 25k would get me in terms of renovating. I’m currently considering rehabbing a row home, 3 bed/1 bath, 1200sq ft. type of property. I understand the cost will fluctuate a lot depending on materials used but would 25k be enough for say the following?
new fridge
new stove
solid counter top
new sink and fixture
maybe new cabinets (or just cabinet doors w/ hardware handles)
redo bathroom
paint walls
carpet upstairs
laminate floors that look like hardwood (downstairs)
change drop ceiling to dry wall
recessed lighting in all rooms
(if there’s any leftover, maybe throw in a new window a/c unit
Would 25k be in the ballpark for this or is it way off? I’m just trying to get an idea and of course will perform exhaustive due diligence if or when I cross the bridge. Thanks for any input.
Sounds like you should be pretty good w/ 25k. Always depend on if you’re doing medium priced or high end rehab, but here’s some numbers:
$1700 - new fridge - This would get you a decent stainless steel model. If you’re doing solid counters, this would be reasonable.
$600 - new stove - Stainless
$39/sq ft - solid counter top - Lowe’s is currently advertising this price here for granite. Includes basic install. Have to pay $200 extra for sink cutout.
$350 - new sink and fixture - For an undermount sink and decent fixture.
maybe new cabinets (or just cabinet doors w/ hardware handles) - Can pay about whatever you want for cabinets depending on your target for quality.
redo bathroom - Pretty broad here too. Are you ripping out an old tub and putting in a tile shower? What kind of vanity? What kind of floors?
$200 - paint walls - Price for paint alone. Can basically pay anything from $8/hr labor to really expensive depending on who you get if you don’t do it yourself.
$2/sq ft - carpet upstairs - This would be for basic carpet, but you could put some berber and pad down for that amount. Lowe’s currently has $97 for whole house installation, but this price is only if the old carpet had been pulled up and disposed of as well as having tack strips in place. Extra charges for anything they do besides just putting down the new carpet.
$1.50/sq ft - laminate floors that look like hardwood (downstairs) - Can get decent looking laminate for this amount. The really cheap stuff sucks and peels up on the edges easily.
change drop ceiling to dry wall - Drywall is really cheap ($7-8 per sheet). Labor can add up.
recessed lighting in all rooms - Not sure about a good estimate here.
$200 - (if there’s any leftover, maybe throw in a new window a/c unit) - This will get you a good side window unit (12k BTU or so). You can find them as cheap as $100 for a 5k BTU which is ok for a small bedroom.
I’m not looking at super high end stuff but would ideally make some items better than the “generic standard”.
By redo the bathroom I mean, new tiles, maybe a new tub (or would something like bath-fitters be decent and easier?). I don’t know what kind of vanity but something that doesn’t have the generic grainy wood finish. Maybe a framed mirror? Nicer sink fixtures. Recessed light over the shower/tub. New shower fixtures. New toilet. Accent shelf/ledge… The bathroom for this type of rowhome would not be too big.
Thanks for the info. At least I know I’m not too far off-base with a 25-30k budget.
It would be plenty for me, with a bunch left over.
I am a good shopper and know where to save money on a rehab. I’ve seen some of those rehab shows where people don’t know what they are doing and spend a huge amount to not gain much ground.
So, whether or not it would be enough money for you to do it, I don’t know.
I would not install laminate flooring. Only the expensive stuff looks good and I can buy real wood at Lumber Liquidators for less money than good laminate.
The down side to real wood is that you have to purchase a compressor and flooring gun. If you do more rehabs, those two items might be a good investment.
I have looked at bath-fitters and similar places and have been surprised at how high their prices are.
I had one property with a good cast iron tub but the surround was in bad shape. I was quoted approx $1800 for a surround install, I don’t know about anyone else but that seems about 3 times what it should be.
After all, I know the material cost is not much and they say they can do a tub re-finish and a surround in less than a day, so 4 hours labor max. Good money if you can get it.
I think their target market is people who want to go to work in the morning and come home to a finished bathroom.
If your tub is cast iron just have it REGLAZED. They do it ONSITE and don’t have to tear out the tub to refinish it. Don’t pay more than $400 for the refinish. The tub will look brand new and it only takes one day. Basically they REPAINT the tub where it sits. They use an acid to rough up the existing surface, then a special 2 part paint, mask off the valves, and the finished product looks like you spent a ton of money. They can also reglaze TILE!!! I can’t tell you how many pink and black 1950’s bathrooms I’ve had reglazed. They look incredible and you can pick any color you like…Tub and tile job runs me about $700 for the average 1950’s size bathroom.
As for appliances…
CRAIGSLIST LIST MAN!!!
With all the foreclosures, I see a LOT of people selling very nice appliances out of their homes BEFORE the bank takes them back!!!
We completed a fairly high-end rehab of a townhouse with 3 bedrooms and 2 baths with 1250 sqft. We did the work ourselves and tore out everything (entire kitchen, both bathrooms, all flooring, stairs, railing, all windows, window seat, all doors, light fixtures, outlets, switches, ceiling fans, exhaust fans, etc.) including some drywall. We put in 6-panel doors, granite tile kitchen counter tops, bamboo flooring and stairs, tile, and above average fixtures. The total cost was $15k, but it took a long time. We did everything, but I would hire some of the tasks if I had to do it again. I can do better work than most making a living at it, but I’m considerably slower.
Lowes and home depot both have closeout/demo applianaces, its not unusual to find items at 50% of retail, sometimes you buy the more expensive item at closeout, then pay retail for the matching items
I’ve talked to some of the sales people at Lowes, they typically put damaged items out early sunday morning so I went at 7am, sure enough, got a stainless steel fridge for $200 with a scratch barely noticeable… could vary from store to store though…
It depends on what price point other homes in your area have granite. In my area it is expected that homes at $300K have granite. Don’t make improvements that don’t increase your profit.