How to quickly estimate the repair costs…
…of a house you’re thinking of flipping profit.
Master this skill so you can estimate repair costs (even without physically seeing it) so you can quickly decide if you have a good deal. With time and experience – you can accurately estimate. It’s not as difficult as you think. Here’s how:
Get as much detail as possible (e.g., property description, location, size, and age)
Look at pictures (as many as you can get)
Use these guidelines:
- For a standard cosmetic rehab* project, use the $20 per sq. ft. rule (e.g., 1,500 sq. ft. house, renovation estimate is $20 x 1,500 = $30,000)
- Newer home (5 to 8 yrs.) needing light cosmetic repairs, use $7 per sq. ft.
- House in good condition, (10-12 yrs.) needing light rehab/update, use $14-$15 per sq. ft.
Adjust for additional items such as:
- Roof ~ $5,000 – $8,000
- HVAC ~ $5,000
- Pool equipment/resurfacing ~ $5,000
* Full update/rehab kitchens, baths, carpet, paint, landscape etc.
If you proceed and offer to buy, validate your estimates with visual inspection and repair checklist.
If you buy the house and hire a contract, use a detailed repair estimator to nail down your rehab cost and contractor bids.
We’ll provide more specifics on upcoming posts and podcasts.