How to Estimate Rehab Costs Fast | My Latest House Flip
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The video discusses how to accurately calculate rehab costs for real estate investing. The speaker emphasizes the importance of knowing the cost of rehab before closing on a property, whether you plan to fix it up yourself or wholesale it to someone else. Rehabbing is both an art and a science, and there are strategic ways to determine costs, but ultimately, different people will have different budgets and finished products. The speaker suggests looking at recently sold houses in the area and matching their level of finishes, rather than going overboard with expensive materials and custom cabinetry.
The video breaks down the different levels of rehab for a thousand square foot house. For a simple cosmetic surfaces rehab, the cost would be around $15 to $20 per square foot. For a level two rehab, which is a cosmetic rehab but not too deep, the cost would be around $30 to $35 per square foot. The difference between level two and level three is a bit gray, but level three would involve gutting the entire house.
The speaker advises that these numbers are just initial estimates and that it's important to get final bids from experienced contractors before finalizing rehab costs. They suggest getting three bids on everything during the contingency period of your contract, which is typically one to two weeks before closing. Another great way to get accurate rehab costs is to utilize the rehab calculator provided by Faster Freedom University. To determine rehab finishes, the speaker advises looking at recently sold houses in the area and matching their level of finishes.
The speaker emphasizes that while they can provide tips, the best way to learn is through experience and taking chances. They suggest hiring a general contractor or paying a little more for help as you learn, but over time, you will understand what to look for and what things cost.
The video discusses how to accurately calculate rehab costs for real estate investing. The speaker e