How To Estimate House Flip Repair Costs | PRO SECRETS

Calculating repair costs on a home renovation is always difficult. When you’re making a lot of offers, you don’t have time to get a GC to bid out every property. You have to get good at estimating based on the pictures. Here is how we do it.

---
If you want to level up, text me at 725-444-5244!

---

We use the Price Per Sq Ft Method to estimate repair costs. Before I get into that, let me add a few caveats to this.

- Market, Price Point, Licensed Contractor, Unlicensed Contractor, Home Age, Permits, and whether you sub the job out will drastically affect these values.

- The values I give are what I see in Vegas. We have very good conditions for renovating because we have newer homes and good weather. Some markets you have to replace everything to the studs every time. We don’t have to do that here.

- These estimates are for entry level flips. We are using budget materials. If you wanted really nice luxury finishes, it will push your budget up.

- This is for cosmetic flips. I’m not including ripping out all the drywall, plumbing, or electrical. That would have to be added on if you have to do that.

That being said here are the estimate we use:

$5-10 Per Sq Ft for a Clean Up Rehab. This would be paint and carpet. Maybe some small fixtures and clean up items.

$15 Per Sq Ft for a Lipstick Rehab. This would be Paint, Flooring, Countertops, Refinishing Cabinets, Refinishing Showers.

$20 Per Sq Ft for an Interior Remodel. This would be Paint, Flooring, Counters, New Cabinets, New Showers.

$25 Per Sq Ft for a Full Remodel. This would include everything with the Interior remodel plus some exterior work and landscaping.

Anything else you would add on for extras. Typically we add $5,000 per big item such as AC, Pool Plaster, Pool Equipment, and Roof. If it needs two of those items, then add $10,000 to your budget.

This method serves us very well in Las Vegas. You can do the same thing in your market, but you may have to adjust your values. For example in Tucson where we invest, a $25 Full Remodel costs us $40. That’s totally fine, we just need to understand our costs so that we can make accurate offers.

Also make sure that you always get a bid before purchasing. This method is strictly to estimate. Don’t get yourself in trouble relying on this only. A contractor is always going to be your best bet for determining what it will really cost.

[consistentheartache]

contractor video needed, as well as wholesale buyer market and where to find them

[homescashma]

Really well spoken on why not to fix everything in terms of appraisal and outpricing a new buyer!!

[Mrcool]

Dude! Im on my our 4th property and am so glad I found your channel when I did! This is super straight forward and crazy helpful. thank you

[andyatmosphere]

As a flipper that has a background in construction I completely agree with Ryan.

[carpediemkiller]

We also need that video on finding contractors!

[bigt]

As a gc I get it, but making below retal wage to make it up in volume? When I have tons of retail work in volume.

[chessgirlvegas]

Love the new show sign; it looks great! Yes, accurately estimating repair costs is extremely important on a deal. Hiring a legit general contractor is paramount. Don't just select the lowest bid.

[maximizedmoney]

This was a relatable breakdown! We can take these numbers and start looking at materials based on the ARV of the home we're considering. Thank you!

[homescashma]

Yes a video on selecting good "wholesale" priced contractors would be helpful.

[kowboyra]

From researching this topic for the past month and looking (and hoping) to make my first flip, the finding of the deal seems to be the biggest variable in this equation.

[TroyKearns]

Another great video, Ryan is a super star on the rise!

[aricwithautoreplay]

10:13 makes so MUCH sense. Win win for everyone.

[andrewbeltran]

I’m 23 and grew up here in Las Vegas. I want to get into this business! I want to buy my first home soon

[ROMAN-oyju]

Im a contractor in WA and this is very good way to estimate IMHO. This does not apply to retail remodeling projects though.

[foxtrot]

Very informative. Simple, short, great

[MyGreenNest]

Please make a video on finding contractors, this video was great!

[JosePresents]

HEY Ryan, great content. I usually surf YouTube and see so so many different channels and people and investors and all sorts of stuff. But man you seem real, sharp, intelligent and relatable. My name is Jose Soto from Texas. I'll be asking questions later on as you put out more videos. 👍

[Elijcuz]

Ryan, crazy story today. A general contractor wants to buy homes to flip & I need to wholesale a few homes with this guy to gain some capital and begin the investing end, great future partnership & just want appreciate your energy/advice on everything real estate here, solid content. Can’t wait to meet you/do business with you!

[alexpierantoni]

Wow, I have learned a lot from you . I want to move to a landlord friendly state ( I’m from NYC) get a multi family 3-4 plex, I will continue to see your videos for more knowledge. Thanks for all the info .

[NathanBeitler]

I agree that homes in the Southwest are going to cost MUCH less to rehab than those in the Northeast or the Midwest. The four seasons and high humidity can really take a toll on siding, decks, roofing and windows. All of that stuff is expensive to replace!!!