What should I estimate for rehab costs for an offer?

Rehabbing, Fix and Flip, Rental Properties
1

I am placing a bid on a HUD home and need advice on what to estimate to take off for rehab costs. According to the property report there is…

  1. Plumbing has possible frozen lines that may need to be repaired
  2. Ceiling leak/ hole in ceiling due ot roof leak
  3. Roof needs to be replaced
  4. balcony paint peeling
  5. exterior siding is damaged (may require new siding)
  6. torn window screens
  7. missing light fixtures
  8. tile cracking in basement
  9. paint peeling in bedroom
  10. kitchen wallpaper is peeling
  11. Washer & Dryer are missing
  12. Refrigerator missing

Other than that, the structure, electrical and HVAC are all good. The main floor is 1087 sq. ft. and the basement is 535 sq. ft. it is a 3 bd/ 2 ba home. Give me a good cushion estimate of rehab costs so I can make a bid (due by midnight). Thanks, Amy :slight_smile:

Oh I should add that it was built in 1972 and has lead based paint.

2

Hey Utah…

From my experience when it comes to rehab costs you need to keep it simple. 5, 10, 15, 20, or 25 K. Call in a contractor and have him or her do a quick walk through and see what they say. Don’t waste too much time on rehab costs.

3

The problem is that I am currently out of state and wont be there for about 2 months so walking through with a contractor is not feasable. I needed to place this bid by tonight at midnight or it might be taken before I get a chance to bid. I just wanted a rough estimate that goes with national average or so, to make sure I don’t UNDER estimate the costs. Thanks, Amy

4

Hey Amy…

Since you are out of state and have a deadline good luck to you on getting an accurate estimate. I guess that’s one of the chances you take dealing long distance. I hope things work out for you.