Buy, Repair, Sell! This has been the eternal mantra of house flipping investors. A simple 3 step process that has the potential for a good return on investment. But what does it really cost to flip a house? Aside from the price you paid for the property at closing, what are some of the real costs involved in remodeling a foreclosure? Well that is definitely a broad question; however, it may be possible to figure the general costs of the typical remodel you might expect from a fixer-upper. Narrowing down the individual projects into categories reflecting average pricing models for different aspects of construction will allow you to form an idea of what your remodel costs may be. We’ll use some of the industry averages for labor and materials. As for the property, we’ll use a three bedroom two bath home, suburban and slightly damaged by vandals. Stripped of its exposed copper plumbing from down in the basement and requiring a complete updating above.
The wall and base cabinets in the kitchen are mostly usable needing only some minor repairs and cleaning. Nevertheless, the countertops and sink need to be replaced. Ditto our kitchen floor. Painting will be required in the kitchen as well as the house throughout. All the carpet must be removed and new flooring installed. Both our bathrooms are in dismay. Two new vanities and fixtures are needed. The bath and shower combo of each are in functional order, although the existing floors and toilets are to be tossed. A few minor holes in the sheetrock of one of the bedrooms, but all in all not overly bad. New lighting will have to be installed but at least the wiring is good. Two new interior doors and a front door. Our siding is fine and we only have three windows to replace. No leaks in the roof witch is always a plus. The garage door succeeds in opening up to the basement witch appears empty and needless of work in and of itself minus the plumbing and water heater. We’ll have to do a little lawn care, but mostly we just want to add some curb appeal. Our typical dream fixer home. Not a major, major overhaul, but definite major remodel.
So where do we begin? Well let’s start with the mechanics. Our plumbing system has been damaged on the supply side. Tireless thieves have cut away the copper piping that was visible between the flooring joists in the basement below and our water heater has vanished. The stub outs to the fixture down through the wall are still present but we need to tie all the lines together and all the four new water spigot lines for the outside hose feeds and washing machine which needs one hot.
Materials we’ll need will be: A new electric water heater at $260, a Pex manifold (3/4” inlets by 1/2” outlets) around $350, 45′ of 3/4” Pex piping and 65′ of 1/2” Pex piping for about $60, spigots and connectors along with some misc. fittings and valves upwards of $125. This gives us $795 in materials.
A licensed plumber could likely finish the job in less than 2 days perhaps and with factoring in the price for the permit could cost upwards of $700 easily. So with the materials and the plumber’s labor we have a price of roughly $1,500. This price should be a good low base. Depending on methods and slight variations this number could expect to swing 20-30% in either direction.
Now the kitchen. We replace the countertops with 18′ of faux granite laminate for $350.00, the stainless steel sink and faucet cost us neighborly around $375.00. The ceramic tile and underlayment for the 150 square feet of flooring along with the tile for the backsplash and all the fixings required are $500. Minor repairs to the cabinetry and hardware have set us back another $200. A ceiling fan, two overhead lights and all the bulbs are $325. Our appliances, range hood, dishwasher and electric oven come to $1,200. So for the jest of our materials needed to remodel our kitchen the price is about $3,000.
Having our sink and countertops installed with connecting of the fixture included cost $400. Installing the backer board, tile and completing the backsplash, grouting inclusive $900. Hanging the fan and lighting were negligible but when combined with installing the appliances we figure the cost be $500. Labor wise our cost amounts to $1,800. To complete this kitchen remodel we have a price of $4,600. That’s about the lower end of the spectrum; again customers should assume a 20-30% swing in any of these job costs.
Both our bathrooms are essentially identical. The master is slightly larger requiring only a longer vanity and 15 square feet more flooring. Two new toilets for $300. Vanities, tops and water fixtures were $650. The cost of the tile, backer board and hardware for both rooms amounted to about $250. Lighting fixtures with all the bulbs, $200. We purchased two medicine cabinets and towel bars for $300. All together we spent $1,700 for bathroom materials. Labor for installing the ceramic tile cost $500. Setting the toilets, vanities and sinks, lighting and towel bars was close to $500. Giving us a grand total of $2,700.
The labor and material to install the front door, two bedroom doors and three small windows was $1,200. Painting the kitchen, baths, living and bed rooms, trim and doors, prep primer and paint was $2,200. Carpeting the home throughout, with padding and the installation, came with a price tag of $3,000. We also incurred a cost of $1,000 for a stepping stone walkway, a few Azalea bushes, and a peach tree along with a general clean-up of the property. Together this comes to $7,400.
So with the general description above we conclude that a project involving this scope of work would cost $16,400. This serves as a good starting point. Each home will obviously have its own needs. The main variable will be your choice of finish materials. Labor cost may fluctuate depending on a wide array of factors and methods. Air conditioning and the cost of replacement roofing will be something you will have to consider if needed. Using this breakdown should enable you to create a generic price estimate that fits your needs. Remember, always shop around for your materials and check out the pricing estimates from at least three different licensed and insured remodeling contractors.
