Case Study - Estimating Rehab Costs per SF
RUN TIME 14:23
Watch our Case Study which takes a detailed dive into 3 different Scopes of Work to help you understand what repairs are included for a Light Cosmetic Rehab, a Heavy Rehab and Full Gut Rehab and how much each Rehab Costs per SF.
Publish Date: 12/18/2018
Cost per Square Foot estimation is a quick estimation technique that uses an estimated $/SF value and multiplies it by the property square footage that is being rehabbed. If a rehabber has experience estimating costs and rehabbing houses, they can reference their past projects & calculate an average $/SF that they can use to quickly calculate rehab costs for potential deals.
How Much Should I Budget per SF for a Rehab?
This is one of the most frequently asked questions by new house flippers and unfortunately the answer is it depends on many factors including:
Estimating Rehab Costs using an arbitrary $ per SF value can be dangerous, especially if you don't know what Scope of Work is included.
You should only use $/SF values if you have rehabbing experience and YOUR OWN PERSONAL cost history. To find YOUR OWN $/SF value, review your past rehab project costs, and calculate your average cost per SF that you can use to estimate future projects.
If you don't have any cost history, start by creating detailed Estimates for you rehabs, and then you can calculate the average $ per SF value for your projects.
To help show you how to calculate your own $ per SF amount, we recorded a Case Study which takes a detailed dive into 3 different Scopes of Work to help you understand what repairs are included for a Light Cosmetic Rehab, a Heavy Rehab and Full Gut Rehab.
Cost per SF Case Study Example:
Here is a breakdown of the Scope of Work for and estimated costs for each example:
Cosmetic Rehab (Light)
Estimated Costs $22,000 ($15/sf)
Gut Rehab (Keep Existing Floor Plan)
Estimated Costs $63,000 ($42.50/sf)
Gut Rehab (Down to Studs Reconfigure Floor Plan)
Estimated Costs $93,000 ($62.00/sf)
Remember, although we provide some cost ranges for Light, Heavy & Full Gut Rehabs, it's always best to create your own Estimates and calculate your own $ per SF values that will work for your specific projects, materials and location.