One of the important steps in fix and flip real estate investing deals is the house rehab process. This quick-profit strategy usually involves buying property at a discount, making changes or upgrades on it, and selling it for more than invested.
But as lucrative as it is, it involves much attention to detail and could take a lot of time to master.
Successful real estate investors are numbers experts: they avoid spending more than necessary for their projects. But one other thing to learn from them is that during the property evaluation phase, they take notes and develop a checklist on items that will need different levels of fixing.
The checklist helps them understand the work to be done.
What is a rehab calculator?
A rehab calculator is an online tool that can determine or estimate the cost of repairs on a property in a real estate rehab project.
Why use a rehab calculator?
Experience, uncertainty in costs, poor financial education, and lack of needed time can make it difficult to determine whether a potential purchase is a good deal regarding the cost of repairs.
The importance of this tool cannot be overemphasized because determining the estimated cost of rehabbing a property is such an important step towards either profitability or loss.
Using a rehab calculator helps you get a realistic idea of the estimated cost of your rehab project and also benchmark when comparing contractor bids. It is helpful in determining the starting point of a budget, especially when considering many variables that could make the estimate difficult or impossible.
But, before using a rehab calculator…
There are several basic steps to note involved in a house rehab process:
- Property evaluation
- Checklist creation
- Project planning
- Project budgeting
- Contractor management
- Project closure
5 best rehab calculators…
We did some digging, and while this isn’t a comprehensive list—it includes popular online calculators and what we thought about them.
Rehab Estimator Calculator
The BiggerPockets Rehab Estimation Calculator simplifies how you manage your property rehab project. After the calculations, you can print out PDF reports that highlight the strengths of your deal, including the number and category breakdowns.
Pros
- Good layout for planning and organization
- Works well if you know the actual prices for what should be changed
- Tracks your spending and helps keep you track of your budget
Cons
- No real-time prices
- Not zip code sensitive
- Limited in how many calculator reports you can create
Repair Estimator
The Repair Estimator provides powerful estimating tools to help you estimate repair costs for your rehab projects in a matter of minutes. With a cost database of over 400 common repair/remodeling work items and unit prices, you will create repair cost estimates that are detailed and more accurate in a fraction of the time!
Pros
- Suggests numbers to guide with estimation
- Demo version has deal analysis and project management tools
Cons
- It can intimidate the user if unfamiliar with Microsoft Excel
- Demo version requires a paid membership to access some features
Installation Cost Calculator
Homewyse Installation Calculator provides easy-to-understand cost breakdowns for 1,000+ common home projects. Just select a category and then choose a specific installation job for an instant, no-obligation, and free cost estimate.
Pros
- Zip code sensitive
- Based on the unit cost method which uses job specific details for superior pricing accuracy
- Contains estimate figures to help you with costing
Cons
- Catered mainly for contractors
- For experienced investors because it does not give a layout of things to fix
Remodel Calculator
Remodel Calculator estimates the most popular remodeling projects: bathrooms, kitchens, windows, siding, roofing, flooring, new heating, etc. You can estimate multiple projects at once!
Pros
- Simple to use and has an updated remodeling costs guide
- Gives price range from low-end to high-end areas
Cons
- The final report may appear intimidating
Projects Calculator
Whether you need to know how many rolls to buy for a wallpaper project, or how many bags of seed are needed for your yard based on its total square footage, the Home Depot project estimator could be of immense help to you.
Pros
- Provides real-time prices and materials
- Superb for highly specific retail buyers
Cons
- Focuses more on custom jobs than on house rehabs
- Does not estimate labor
Rehabbing has been dubbed as one of the most popular exit strategies exercised by real estate investors.
Whether the house flip requires minor or substantial renovation, you can turn a profit flipping homes in today’s market. But, this starts with planning and creating a schedule for each stage.
For new investors, this might seem like a gamble. But it doesn’t have to be if you do your due diligence. Understand that real estate investing is a business. So, treat it like one.
Determine the best areas to look for properties, talk to other investors about real estate, consider multiple sources for buying properties, talk to others rehabbers, and last but not the least, read about real estate investing.
To get you there, a MyHouseDeals membership connects you to a thriving community of more than 100,000 investors strong and all of the services, tools, and resources you need to flourish in this industry. Roughly a third of our members consider fix and flips their primary investment strategy. A Premium membership offers countless benefits to fix and flippers. Beyond access to deals 14 days before regular members and unlimited access to all properties, you’ll also enjoy access to our exclusive list of cash buyers, your own lead generation website, wealth-building training courses on demand, and much, much more.
