In Part 1 of this series, I shared that as an investor, developing the skill of estimating repairs is key to your success and making a profit. I also provides some tips, process, guidelines and first steps to take.
In Part 2 I shared some exterior repairs and cost guidelines.
In this post (Part 3) I’m sharing some interior repairs and cost guidelines.
These are typical repair or replacement costs based on national averages. Costs may vary depending on your area and market conditions. Check you local rates and remember to get the best prices and quality you can negotiate. These cost estimates are based on small to mid size houses (e.g., 1,200 – 2,000 square feet). Remember the objective here is to quickly yet methodically estimate repairs so you can make the right offer to buy a house, repair it and sell for a nice profit.
Water Heater $600 (replacement)
Central A/C $3,000 – $8,000 depending on house size (e.g., 1,500 sq. ft ~ $3,000, then $1,000/1,000 sq. ft thereafter)
Furnace $2,000 – $3,000
Plumbing $500 – $10,000 | At a minimum replace sinks and faucets $500 | Example: $2,500/floor (includes kitchen and bath fixtures)
Electrical $300 – $5,000 | at a minimum replace switches and outlets | new panel $1,500 – $2,000 | rewire house ~ $4,000/floor
Walls $750 – $3,500 for patching or replacing a few walls | major effort (e.g., total gut job ~ $3/sq. ft
Interior doors and trim $1,000 | replace old doors ~ $75/ea. Replace trim as needed only
Interior paint and trim $1.50 – $1.75/sq. ft is the general rule | Example: 1,500 sq. ft. house ~ $2,250 – $2,500
Flooring $2,000 – $5,000 | Budget ~ $3,500 | carpet $1.35/sq.ft | hardwood $8/sq.ft | resurface wood $1.50/sq.ft | tile $3/sq.ft
Kitchen $6,000 – $7,000 for full rehab (wood cabinets, granite counter-tops, appliances, fixtures) | deduct for things in good condition or can be reused
Bathrooms (2 – 3) $1,000 – $7,000 | $500 for refresh (new vanity, faucet, toilet) | $2,500 – $4,000 for full rehab
Miscellaneous interior items $300 – $ 500 | replace door hardware, various interior window hardware, etc.
Dumpster/trash removal $400
Final cleaning (for selling the house) $150 or $0.20/sq.ft
So your action steps for part 1 – 3 are:
- Head over to iTunes or Stitcher Radio, download and take notes on all four episodes on the topic of estimating repairs as an investor.
- Make a list of common repairs for a single family house (exterior and interior)
- Collect national repair estimates for each repair (site to help below)
- Check these compared to local pricing
- Establish relationships with general contractors and negotiate down with the commitment of repeat business
- Keep updated and refined over time
Here are some resources that can help with repair costs (retail) so adjust for investor and local rates:
- HomeAdvisor.com
- HomeRenovationEstimate.com
- PillarToPost.com
- Fixr.com
- HomeWyse.com
