Posted by Rolfe Kurtyka on March 20, 2001 at 19:11:11:
…say what the heck.
Rich, this response is probably not exactly what you wanted to hear, but here goes. In my market, the good deals often go so fast that there really is no time for long-hand analysis. One walk through is typically all I get, and then the seller (usually a wholesaler in my case) is looking for an answer. If I don’t buy someone else will, usually later today or tomorrow. I have to know what I’m up to well enough to quickly conceptualize an estimate, and I have to know my market well enough to estimate the after rehab value. I estimate in $5000 increments, as in the rehab will cost $10,000, or $15,000, $20,000, or $25,000. I know that I can pretty well take care of anything a single family home can throw at me for $40,000, barring any extraordinanry and readily obvious infirmaties, such as structural problems. Partial rehabs are of course less. Try to find someone in your area who knows rehabs, and see if you can pick their brain for knowledge. Or, you could call various subcontractors who are experienced with your type of rehab, and ask how much a typical job costs. For instance, for a substantial rehab, I know a new furnace will cost about $4000. New duct work will cost about $1500. Typical rewiring costs about $4000, and plumbing about $4000. Materials will be around $7000, including drywall, lumber, electrical & plumbing fixtures, cabinets, doors, and hardware. Eight to twelve weeks of labor, a smaller reroof about $5500 and a larger roof around $9,000. Appliances cost roughly $500 each, and so do 35 yd dumpsters. Etc., etc.
Good Luck; Rolfe