Does 20 dollar per sq ft rule work in Canada

streetcore · Sep 23, 2015

I was reading this post by an American house flipping blogger who says a quick way to estimate repair costs for a standard cosmetic rehab is to use the “$20 per sq. ft.” rule. "For example, if you are buying a house that is around 1,500 sq. ft., you can plan on spending right around $30,000 for the rehab (1,500 x $20 = $30,000). A 'standard' cosmetic rehab usually includes all new flooring (carpet and hard surface floors), paint (inside and outside), baseboards, electrical and plumbing fixtures, new kitchen/bathrooms (including cabinets, granite, appliances), blinds and window treatments, doors and maybe a little bit of landscaping."

I know many things are cheaper in the US than they are here in Canada, so I'm wondering if this rule could be used here as well for rough estimates? Would you round up to $30 based on the current exchange rate?

Thanks.

streetcore · Oct 12, 2015

No one has any thoughts on this? Any other suggestions for estimating rehab costs?

bb2 · Oct 13, 2015

streetcore said:
I was reading this post by an American house flipping blogger who says a quick way to estimate repair costs for a standard cosmetic rehab is to use the “$20 per sq. ft.” rule. "For example, if you are buying a house that is around 1,500 sq. ft., you can plan on spending right around $30,000 for the rehab (1,500 x $20 = $30,000). A 'standard' cosmetic rehab usually includes all new flooring (carpet and hard surface floors), paint (inside and outside), baseboards, electrical and plumbing fixtures, new kitchen/bathrooms (including cabinets, granite, appliances), blinds and window treatments, doors and maybe a little bit of landscaping."

I know many things are cheaper in the US than they are here in Canada, so I'm wondering if this rule could be used here as well for rough estimates? Would you round up to $30 based on the current exchange rate?

Thanks.

The flips I have done vary, as no house requires the same amount of work. Some need furnaces and roofs, some don't. $30.00 a square foot is more realistic for a quality job to redo a main floor completely.

streetcore · Oct 13, 2015

bb2 said:
The flips I have done vary, as no house requires the same amount of work. Some need furnaces and roofs, some don't.

Thanks for your response. $20 per square foot is an estimate for a "standard cosmetic rehab" as outlined above. So this does not include things like furnaces, roofs, drywall, structural work, etc.

bb2 said:
$30.00 a square foot is more realistic for a quality job to redo a main floor completely.

Is that for cosmetic work as described above? Are you having the work done by a contractor or are you doing it yourself?

Thanks again. Your assistance is much appreciated.

Matt Crowley · Oct 13, 2015

I'd do the math myself. If I were considering this business seriously, I would obtain my own estimates and build up a $/SF estimate that way.

Thomas Beyer · Oct 13, 2015

People have drowned in rivers one foot deep on average. (TM)

[ yes, I own this trademark ]

streetcore · Oct 13, 2015

ThomasBeyer said:
People have drowned in rivers one foot deep on average. (TM)

[ yes, I own this trademark ]

Is it wrong to ask questions to minimize the risk of drowning?

Thomas Beyer · Oct 13, 2015

Of course it is not wrong. But you have to know the possible maximum depth !

In your house case, some renos cost $12,000 and some $120,000 due to mold, lack of code compliance, leaky roof, shattered windows, structural issues or rot ! As such an average does not help much.

If you stand in two buckets one with water at 80 degrees and one ice water are you comfortable as on average it is only 40 ?

Details matter. Average can be misleading.

You never buy an average house. You buy a specific house in a specific location with specific unique characteristics in a specific point in time.

SVS · Oct 13, 2015

ThomasBeyer said:
People have drowned in rivers one foot deep on average. (TM)

[ yes, I own this trademark ]

awesome quote!

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Does 20 dollar per sq ft rule work in Canada

streetcore

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