Cost per SF For a Rehab Project

I am looking for someone to give me a price per square foot for rehab cost. I have found several auction properties and am unable to view the inside. Any help is greatly appreciated.

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Cost per SF For a Rehab Project

This information is an excerpt from a recent discussion on BiggerPockets.com with Dave w/ HouseFlippingSpreadsheet.com & a fellow investor:

I am looking for someone to give me a price per square foot for rehab cost.  I have found several auction properties and am unable to view the inside.   Any help is greatly appreciated.

Hi There,

​Blindly using $/sf values without completely understanding what's included is a very dangerous way of estimating rehab costs.

Rehab costs vary widely, so if you are going to use $/sf you need to understand that the Scope of Work, level of finish, & market will impact your prices.

I would recommend performing a pricing exercise and calculate 3 different detailed estimates of a typical sized rehab project that you will pursue, with different grades of rehab (light, medium, heavy).

You can then use your estimated $/sf values as a quick, high-level estimation for your rehab projects.

Pricing Exercise Steps to Calculate $/sf values

  • Find a Typical prospective rehab property that you will pursue at the auctions
  • Create a detailed Scope of Work for each Scenario (light, medium, heavy)
  • Create a detailed list of whats included in each scenario:
  • Light - Paint & Carpet?
  • Medium - New kitchen, bathrooms, finishes throughout?
  • Heavy - New floor plan layout, structural changes, MEP upgrades & finishes?
  • Create a detailed Estimate for each Scenario (light, medium, heavy)
  • Talk to local contractors about specific scopes to get local repair pricing
  • Once you've calculated the Total Repair Estimate for each Scenario, calculate the cost per SF
  • Divide your Total Repair Costs / Property Square Footage

This pricing exercise will give you a much better understanding of whats included in the $/sf values and provide more accurate pricing for your specific projects & market.

You can use these $/sf values to help estimate preliminary, high level estimates until you get a chance to create a detailed Scope of Work & estimate for the project.

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