Do you have a costing model for rehabs?
I’m learning a lot from your emails…much
more than the seminars I attended.
Great question Edwin, and thanks for the
I get this one a lot, and it annoys me that
so many of the so-called “gurus” never
answer it directly.
Instead they give the “well it depends”
answer, which doesn’t help anyone.
At Capital Rehab Group, we use a very
simple formula for calculating the cost
of a rehab:
Sq Ft of House x $25 = Cost of Rehab
For example, if you are going to rehab
a 1200 sq ft house, your estimated rehab
costs would be:
1200 sq ft x $25 = $30,000
As another example, if you are rehabbing
a 2200 sq ft house, you can estimate
the cost to be:
2200 sq ft x $25 = $55,000
This is a very simple formula, and it is
excellent for quickly estimating rehab
costs when looking at properties.
Let’s be honest: when you are looking
for a house to flip, it is impractical to send
a contractor out to every single property
you look at to give you an estimate.
This formula allows you to quickly get
a rough estimate of your rehab costs
in MOST markets.
Now keep in mind, before you actually
buy a property, get an accurate estimate
from a contractor, and have a home
inspector look at the house as well.
That said, it is really amazing how
accurate this simple formula is on
If you want more tips and formulas like
this one, grab our Capital Rehab Group
Pro House Flipping Guide.
It is a series of videos that shows you
every trick, secret, and formula that
we have used again and again to
successfully flip houses.
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