BiggerPockets Real Estate Podcast The Simple Formula to Estimate Renovation Costs (2025 Numbers)
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Jun 18, 2025 Learn how to accurately estimate renovation costs for real estate projects, using crucial price-per-square-foot guidelines. Discover the benefits of hiring a property manager versus self-managing your rentals. Explore innovative ways to access home equity without refinancing, ensuring better cash flow. The discussion also covers evaluating profit margins on flips and the nuances of working with real estate agents. Plus, gain insights on maintaining positive business relationships in the competitive real estate market!
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Estimate Renovation Costs Per Sq Ft
- Estimate renovation costs by multiplying cost per square foot by total square footage.
- Use $10-25 for light, $20-40 for mid, and $35-75+ for high-end renovations to ballpark costs.
When to Hire Property Management
- Hire a property manager when you want to regain time or improve efficiency in managing multiple units.
- Property managers excel at fast unit turnovers and cost efficiencies even if they may not care as much as you do.
Henry's Self-Management Experience
- Henry Washington managed 80 doors self-managed before hiring a property manager.
- He realized a manager's efficiency outweighed his own care level leading to better financial outcomes.