Rehab Analysis Spreadsheet
NOTE: The spreadsheet provided below contains numbers for a specific deal that I did…these numbers shouldn’t be assumed to be the numbers that would go into your particular deal(s). If you want to learn how to estimate rehab costs and analyze deals, I highly recommend picking up my books: FLIPPING & ESTIMATING BOOKS.
For investors (and up-and-coming investors) looking for a good spreadsheet to analyze the profitability of a flip, here you go. This is one of the spreadsheets I use everyday in my business (modified to remove a lot of the crap that’s specific to my projects).
It’s a pretty straight-forward spreadsheet, and anyone who has completed a couple flips probably has their own; but for those who don’t or those who have no idea where to start, this should be helpful. Just being able to see in one place all the costs, expenses, commissions, and fees associated with a typical rehab makes the whole analysis a lot less daunting. Not to mention, the rundown of typical labor and materials costs on the worksheet should help new investors get a handle on the list of rehab costs associated with a rehab project.
The spreadsheet is currently populated with an estimate from a recent flip we completed, just to give an idea of how it’s used. Hopefully, you’ll find this useful…
[…] Rehabbing Analysis Spreadsheet […]
This re-hab spreadsheet just saved me a whole day of designing one from scratch. Plus I’m sure theres stuff in here that I wouldn’t have thought of. Thank you so much! Thank god for Google Search!
Loved the spreadsheet. Customized a few things I used, and on the way. Thanks so much! Pam, Almost Home in KC, Kansas City
EXTREMELY HELPFUL!! Thank you! I just paid for a rehab estimator and am much happier with the one you just provided me. One big question I had, though, is what is the square footage roughly of the house you were estimating? Thanks again, Amanda
Hi Amanda,
That house was about 1900 square feet. That said, I wouldn’t use this spreadsheet as an estimation tool…it’s definitely not meant to be used that way. It’s more of a template you can use to analyze a deal, using your own rehab numbers.
Thanks so much! I’m using your spreadsheet along with several other resources to come up with a rehab analysis tool to analyze my deals. Your spreadsheet is really helpful to me for comparison. Where, out of curiousity, was this house located? Thanks again!! Amanda
Hi. No matter what I do, no matter how much updating I do with Microsoft Word, I cannot download the Business Plan. Is there any other way I can receive it?
Love the spreadsheet!!!!
Great spreadsheet-it helps put a lot of things side by side so that I can get my mind around what all needs to be considered as well as the associated costs. I am curious as to how you estimate your labor cost. Do you start out with a rough estimate and adjust as you go along?
Hey Dennis,
I’ve been using the same contractors for several years now, so I have a very good idea of what they charge for different types of jobs. That said, doing what you suggest (starting with rough estimates and iterating as you get bids) is definitely the way to go. Just make sure you start very conservative, so that when you fill in actual numbers (from actual bids), you don’t have to worry about your budget skyrocketing.
You’re God sent!
How do we reach you for a consultation?
Hi Patricia –
I don’t really do consultation. You’re welcome to post questions on the blog, and I can answer them here, and if you want more flipping info, feel free to check out my new books: http://www.biggerpockets.com/flippingbook
Thank you for great spreadsheet!
was the holding total for 1 month?
Javi –
I’m not sure I understand the question? You can ignore the data in the spreadsheet…it’s just an example. You can enter your own data to get results for your specific properties.
Just wanted to be number 10000000 to thank you for all the time and insight you offer us. This site is a wealth of information! Thanks again
Thank’s for this spreadsheet. Just what I was looking for!
Thanks J for the wonderful spreadsheet.
I wanted to see your spreadsheet
Thanks for the spreadsheet and easy download. Just what I was looking for.
Nice job developing this sheet. It saved me so much time. Thanks so much!
What a great, simple spreadsheet template!! Love it! Thank you! -LF
Proud owner of J. Scott’s book and love the bigger pockets website. The final questions in each blog segment is a cool send off as well. Looking at the spreadsheet where “Seller Costs” is listed, I don’t understand why you have a “Commission to Agent” and “Buyer Closing Costs”. Aren’t you just duplicating the same 6% commission fee?
Hey Dan –
Regarding your question about Seller Costs, the commissions are what are paid directly to the two agents for their work; the “Buyer Closing Costs” are concessions that some buyers ask for to offset their out-of-pocket costs at closing. For example, with FHA buyers, it’s not uncommon for them to ask the seller to pay up to 3% of the sale price towards their closing costs.
J,
Thanks for putting this template together, it also saved me much time. Elaborating on Dan’s question above, wouldn’t the “agent commission” and “buyers closing” costs each be factored in at 3%, then? Looks like both are factored at the 6%, making a total of 12% cost to sell the home. : /
I’m new to the game, so I’m sure there is an explanation for that.
Steve –
Agent commission is typically 5-6% (between listing and buyers agents). On top of that, in some areas and with some types of buyers, you can expect to pay for some of the buyer’s closing costs. It used to be up to 6% for FHA, and many of my buyers were asking for 6%. These days, it’s down to 3%, so that’s what I typically figure if I’ll be selling to an FHA buyer.
I thought I saw a link provided to get discounted rehab analysis software and now I can not find it. Is it still available?
Hey Mike,
Use this link to get to the site (they have a free demo): https://getdpd.com/cart/hoplink/17288?referrer=lu0j6tfnju8o4
And then use this coupon code at checkout to get a 10% discount: 123FLIP10OFF
Thanks! for a very helpful spreadsheet. I have one question though How did you come up with the selling price? did you arrive using some (formula) or calculation to come up with the selling price? Thanks, in advance for your response.
Hi Ruth –
I did a comp analysis (like an appraiser or real estate agent would) to determine the resale price…
Hi J., now that we are in 2015 and you have moved to a new state, do you see any change in labor costs, materials, and wholesale and resale market trend? you probably have moved up to higher-end properties now, do you still see opportunities for newbies to get in to this business? Thanks in advance!
Thank you. Excellent spread sheet.
I do have questions.
1. On mortgage payments, why don’t you distinguish between interest and principle since the principle payments are not really a cost because you get those back. Seems to be that is a cash flow issue, not a profitability issue because the amount of principle repaid should really be part of profitability if you are counting that component of the payment as a cost.
2. On purchase price, why don’t you distinguish between out of pocket and financed components of the purchase price? Although its an ROI issue rather than a absolute profitability issue, seems to me that would be helpful to understand in finding out the return you are generating on the money you actually put at risk>
Hi Mike –
The purpose of the spreadsheet is to generate a quick idea of the level of profitability of a flip, not necessarily to generate all the metrics associated with a project. Most flip loans are going to be short-term, interest-only, so principle payments are typically not even a factor. As for out-of-pocket vs financed costs, this gets more into the ROI of the project, and personally, I believe that ROI is meaningless on a flip project without doing a full IRR analysis, which would involve a much more complicated spreadsheet (customized for each project).
I have some other articles and spreadsheets that discuss IRR analysis, and would recommend using them separately once you determine whether the potential profitability of a deal is worthwhile. If so, move on to the IRR analysis. If not, you just saved yourself some time.