Every investor understands the importance of HVAC, roofing, and plumbing fixtures during a rehab. These three components help in estimating the cost of rehab a rental property quickly. There are 4 more components of a rehab that decide the complexity as well as the cost of the project. These rehab components are flooring, kitchen, bathroom, and painting. In some rehab projects, these 4 components assume even greater significance than HVAC, roofing, and plumbing. How quickly and accurately you assess the cost of these 4 components during a rehab decide how effective your project turns out in the end. Let us dwell a little more on each of these 4 components of a rehab.
Painting
Let us begin with painting, the quickest and least expensive of the 4 components. 300-400 sq ft of a space can be easily done using a gallon of paint. This gives you a clue as to how much of paint you will need to paint the entire house. One room measuring 10X10 feet can be easily covered in a gallon of paint. With a gallon of quality paint available in about $20, you know how much it is going to cost you to paint the whole house. However, the major cost with painting is that of the labor that charges $2 per sq ft. It is easy to make a quick estimate of this component of rehab by just calculating the total size of the walls.
Flooring
Flooring is a major aspect of a rehab that is not just costly but also time consuming. You can use cheaper options like laminate, ceramic tile, and carpet as flooring but sometimes use of hardwood becomes necessary. In general, the average cost of flooring comes to $2 to $3 depending upon the materials used. This amount includes the cost of materials as well as labor. If your budget is small, you can search for inexpensive ceramic tiles that are available at a price of less than half a dollar per sq ft. To cut down your cost of flooring, it is advisable to shop around for alternatives.
Kitchen
Kitchen of a house can eat up lots of money during a rehab. There is no end to the amount of money that can be spent on a kitchen to make it look great. However, you need to keep in mind your budget for overall rehab when spending money on the kitchen. You have to replace the countertop and the cabinets of the kitchen and buy materials according to your budget. This is the only way to make sure that you do not overspend and also make the kitchen look great. Shop around to buy cheap laminates and plywood for the cabinets. Similarly, arrange granite countertop that is cut and polished to the size so that no additional costs are involved during installation.
Bathroom
Like kitchen, the renovation of a bathroom can prove quite expensive because of the sheer cost of the fixtures. You can transform the looks of the bathroom by simply replacing the tiles on the floor and the walls. Large, one square foot tiles are not only good to look at but are also available at inexpensive prices in the market. Like the flooring of the house, it is the labor cost that proves costly in the case of bathroom tiles. You must pay around $2-$3 for installation of per sq ft of tiles in the bathroom.
Asses the condition of these 4 components in the house and then calculate the cost of rehab of your project. The more accurate your estimate, the better it is for you when taking an investment decision for a rental property.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.
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As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
