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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Quick "fix" number Posted by Dee on August 04, 2003 at 7:41 PM In Reply to: Quick posted by Ward-CA- on August 03, 2003 at 7:24 AM : : I've heard others in the past use a figure in "dollars" times "square feet" what they know that they can either rehab or gut a house. what i'm looking for is just something that i can use to come up with a ballpark figure when standing in the house before doing a complete walk through with my contractor. Im working on a deal on a 2 story 1920s home thats still in the maybe stages and needs to be gutted due to water damage and age. -=-=-=-=-= : Dee, : Because of the sheer number of foreclosure deals I have to look at, I too use a "quick number" to figure out a fix-up allotment. : I figure what the FMV (fair market value) of the property will be after rehab. I then take 8% of that figure if the property is worth more than $250K or 10% of it if it's less than $250K. : For example if I figure the present, fixed up FMV of a foreclosure is $375,000 then I will earmark 8% of 375,000 ($30K) for rehab cost. Howdy Ward. say that 8% if over $250,000 for rehab, would that be a complete gutting of the interior or just a complete rehab short of gutting. Most of the houses that Ive seen lately would need to be gutted. They're also in areas that a complete new interior would sell well so, it would be justified resale wise Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : I've heard others in the past use a figure in "dollars" times "square feet" what they know that they can either rehab or gut a house. what i'm looking for is just something that i can use to come up with a ballpark figure when standing in the house before doing a complete walk through with my contractor. Im working on a deal on a 2 story 1920s home thats still in the maybe stages and needs to be gutted due to water damage and age. : -=-=-=-=-= : : Dee, : : Because of the sheer number of foreclosure deals I have to look at, I too use a "quick number" to figure out a fix-up allotment. : : I figure what the FMV (fair market value) of the property will be after rehab. I then take 8% of that figure if the property is worth more than $250K or 10% of it if it's less than $250K. : : For example if I figure the present, fixed up FMV of a foreclosure is $375,000 then I will earmark 8% of 375,000 ($30K) for rehab cost. : Howdy Ward. : say that 8% if over $250,000 for rehab, would that be a complete gutting of the interior or just a complete rehab short of gutting. Most of the houses that Ive seen lately would need to be gutted. They're also in areas that a complete new interior would sell well so, it would be justified resale wise Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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