What % do rehabbers normally use for their oops/contingency factor?
Thanks.
The “oops factor” is directly propotional to the number of thumbs that you have on each hand.
I would guess ± 10% but I tend to be a tightwad…
Keith
I put in 3-5K oops, depending on the property.
small rehabs (up to $1k); bigger jobs–up to $5k. also I like to spend money up front on inspections to make sure the infrastructure is solid (i.e. foundation, roof, furnance) (or not if the case may be). Those are some of the “got to avoid” big opps…
that way you can deal with more “common” ones like the big sliding glass door which is trashed was a custom size so the price jumps from $600 to $2000. This happen to me on my last rehab.
Door problems. I had the same thing. I had to replace a french door that leads to the outside. The last one was custom. We took an interior door and made an exterior door out of it. We painted the heck out of it and installed hardware…looks good and should last a few years before we have to replace.
I advise people to account for 10%, up to 20% if you’ve never done a rehab before and/or it’s a big job.
Great.
Thanks guys.
Just so it’s clear,
When you’re figuring a percentage for the “oops” that’s based off of the repair estimate, not the purchase price.
Example: If you’re rehab is going to cost $30K to do and you have a 10% oops, then you need to allow $3K.
Raj