The Repair Costs on Step 3 of Flip Analyzer is used to enter the estimated costs for the renovation of the property.
For your flexibility, you have 3 different options for entering the Repair Costs:
The Lump Sum option allows you to quickly enter a lump sum value for the renovation. For example, if you just want to quickly plug in $50,000 for the Repair costs, you can easily plug in that value as a placeholder.
The $ per SF option allows you to estimate the renovation cost based upon the Square Footage of the property.
Cost per Square Foot estimation is a quick estimation technique that uses an estimated $/SF value and multiplies it by the property square footage that is being rehabbed. If a rehabber has experience estimating costs and rehabbing houses, they can reference their past projects & calculate an average $/SF that they can use to quickly calculate rehab costs for potential deals. For example, a rehabber may look at their past projects and see they spend $40/sf on average. They can easily plug in a $/SF value which is multipled by the property square footage to provide a quick budget.
Learn More About $/SF Estimation
The Detailed option pulls the live estimate data directly from the Repair Estimator tool. Whenever your estimate changes in the Estimator it will live update and impact the profitability of your analysis.
Detailed Estimates involve a lot more time and due diligence, but are generally the most accurate way to estimate repair costs because the process requires you to inspect the property, quantify and price all of the repairs.
Learn how to use the Estimator to Create a Detailed Estimate
