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.