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What rehabbing your rental property could cost you

Rehabbing a house or rental property can be a great way to turn a run-down property into a beautiful home, but it can also be an expensive endeavor. From small cosmetic updates to major structural repairs, there are a lot of costs to consider when rehabbing a house. Here’s what you need to know about how much the process will cost you.

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Cost Breakdown: The cost of rehabbing a house can vary greatly depending on the extent of the renovations and the location of the property. According to HomeAdvisor, the average cost of rehabbing a house is $46,428, although it can range from $19,000 to more than $100,000.

Here’s a breakdown of some of the most common rehab costs:

  1. .Structural Repairs: These are necessary repairs like fixing foundation cracks or replacing the roof. These repairs can cost anywhere from $1,000 to $25,000 or more depending on the extent of the damage and the materials used.
  2. Electrical and Plumbing Upgrades: Upgrading outdated electrical or plumbing systems can cost anywhere from $500 to $10,000, depending on the scope of the work.
  3. HVAC Updates: Replacing an outdated heating, ventilation, and air conditioning (HVAC) system can cost anywhere from $3,000 to $7,000.
  4. Cosmetic Updates: These can include painting, flooring, fixtures, and other small updates. These costs can range anywhere from $1,000 to $10,000 depending on the materials used.
  5. Permit and Inspection Fees: Depending on where you live, you may need to pay for permits and inspections. These fees can range from a few hundred dollars to several thousand dollars.
  6. Labor Costs: Labor costs can vary widely depending on the work being done. For example, hiring a general contractor to oversee the entire renovation can cost 10-20% of the total budget. Or, hiring specialized contractors like plumbers or electricians can cost upwards of $100 per hour.

Overall, the costs of rehabbing a house or rental property can add up quickly. Before you start your project, make sure you have a clear understanding of the scope of the work and the costs associated with each task. At BACH Real Estate Investment Group, it is in our process that we will recondition the property. Planning and budgeting carefully will help you avoid any surprises and stay on track with your expenses.