When it comes time to fix up a house, the most demanding part is finding a great contractor and estimating the cost of repairs. This can either make or break you. Hopefully this article will bring some insight how to navigate costs of repair.
Repair costs will vary based on quality of products, and how much labor costs in your area.
Almost all houses bought for an investment need work because you are trying to add value anyway you can. If you are trying to get a great deal you also have to buy houses that need some type of repairs. When a house needs a lot of repairs, there are fewer buyers who will buy this type of home meaning it can be a better deal for you. At some point all houses will need work.
When fixing up a house, the house will need to be painted and have flooring replaced (unless it was already done). Normally the cost to paint the interior of a house is $1.50 – $2.00 per sq ft. Resoluting, $2,200 for a 1,500 sq ft house (including trim and walls). Painting the exterior can run you a little more, around $3.00 a sq ft.
Usually when I replace flooring I use carpet for living areas, and laminate/vinyl/tile for kitchens and bathrooms. I don’t add or replace hardwood because of the higher cost. It is approximately three times as much as carpet to replace. I spend about $3,500 for the carpet and another $1000 for laminate/vinyl/tile, for a 1,500 sq ft house.
Next is appliances. Adding new appliances makes a huge difference in the look of a kitchen. Between the stove, dishwasher, and microwave I spend an average of $1,100. I buy a used fridge for rentals, and flips ($300).
A great way to update a house is by replacing the light and plumbing fixtures. For an entire house, you can replace the lights, facets and door handles for $1,200.
Altogether cosmetic repairs will cost roughly $9,300.
When you fix up a home it almost always costs more than what you estimated, so be prepared. Don’t forget to factor in, outlet covers, landscaping, holes, etc.
Major Repairs can be estimated at:
Kitchen: $5,000 including labor
Baths: full gut $3,000
Electrical: $200 – $5,000
Foundation: $11,000 – $12,000
Windows: $300 per
Doors: $150 per
Hot Water Heater: $800
Sheetrock: $1,000 – $4,000
Find a great contractor, and shop around to help keep costs down. Remember costs are different for every city. Repairs can easily add up, always plan for more expenses.