Are you interested in renovating your Home?

Estimating Rehabbing Costs

With so many great foreclosure and short sale opportunities available right now, many investors and buyers are taking advantage of Boca Raton distressed properties that need rehabbing. If you can do the work yourself, you will save a bundle of dollars. Not every foreclosure needs a total extreme makeover because there are some luxury Boca Raton REO’s that just needs cosmetic repairs such as painting, changing flooring and lighting.

The Best Ways to Use Rehab Dollars

Follow the 1:3 rule. For every dollar you spend, you get $3.00 back. Certain repairs will net you a higher rate of return such as rehabbing kitchens and baths. If you cannot do the work yourself, ask your Boca Raton Realtor for contractor recommendations. Realtors have established relationships with all different types of vendors and contractors such as plumbers, heating and air conditioning repair companies and electricians. Get three estimates to compare services. If you have can purchase the materials yourself, you will save some money. Look for close outs on flooring and buy from discount places or companies that are going out of business. When you are purchasing a handyman special, the property will probably need systems such as the roof, electrical, plumbing, and the home may have structural damage so be sure you have a thorough home inspection before making a commitment to redo the entire home.

To get started with estimating your rehab costs, try using a rehab calculator. You can find them online. If you are purchasing the home to live in, then you will probably want to use more expensive and better quality materials unless you are buying a luxury property that you intend to rent out as a vacation home. Once you have rehabbed a few properties, you will get more comfortable with the process. The biggest reason investors lose money on their rehab projects is they fail to estimate their repairs accurately, and end up going way over their budgets. Take your time and do it right so you don’t regret your investment and end up paying for it years later.