Rehab questions - Posted by T_Mac

Posted by garrison on March 08, 2002 at 20:52:15:

i do rehabs in baltimore and have done a few similar to your post. i use a very reasonable contractor to do all of my work and i pay roughly 10-15 w/ appliances, windows, carpeting, & cosmetics (interior/exterior). however i have not done any ac installation as you mentioned, if it alsready has the duct work i make sure the unit looks ok and works, if it doesnt have the duct i leave it.

i try to purchase properties for roughly 15-20k, put another 15k into labor/materials and always sell for 55-60k (try to sell for 10k below appraisal to keep everybody happy and move the property w/in 3 months) i havent had a problem at all moving properties and usually go to clossing the week the work is complete.

best of luck


Rehab questions - Posted by T_Mac

Posted by T_Mac on March 08, 2002 at 10:46:04:

This is my first rehab and have a question:
The property is a 2 bedroom, 1 ba, rambler w/unfinished basement located in PG County, MD.
It needs roof (I’ve already had it replaced), interior/exterior painting, carpeting, cleaning, etc.
It currently has radiator heating. I would like to install central heat/ac. I am getting bids on that now, which will include duct work, etc. I will be replacing the kitchen counter tops, vinyl flooring, installing new kitchen appliances (fridge, gas stove, range hood). My question is:
What should I expect to pay to rehab this property? I plan on reselling to an owner occupant.

I have a rough idea, just wanted to get other opinions.

Thank you.

Re: Rehab questions - Posted by Kim (FL)

Posted by Kim (FL) on March 08, 2002 at 21:58:14:

Seems too general for anyone to give a good estimate. I agree with Garrison that 10-15k is reasonable. However – with a new roof and a/c I bet you’re much closer to 15k. The last one we did was 14k – all the basics (carpet, paint, wall repair, new cabinets, fixtures, appliances, basic repairs to plumbing etc) and we were at 14k. We’re doing one right now with all of the above issues plus we’re needing a new garage door and major dry wall repairs (taking out '70s panelling) and we’re at 15k. Again – no roof for these! Don’t know what market you’re in - we need to sell in the 140k range so we have “pickier” clients and have to do decent upgrades.

I will tell you NOT to buy until you’re sure that you have plenty of room for repairs AND a good buffer (3%) to cover unexpected costs.

Good Luck! Get everything in writing!! Our first rehab – the handyman quoted us a price and gave us a very very general quote on paper and then he nickeled and dimed us to death when we actually told him to start work and we ended up spending THOUSANDS more (like 6 thousand more)! It was a great lesson but it took away most of the profit. Once you get over your first one, it’s much easier!!! :slight_smile: