Ballpark on a Gut Reno
I’m looking to buy a fixer-upper on a somewhat limited budget, and I have two questions. First whats the best way to go about getting an FHA loan? Second, what woudl be a ballpark range for a gut renovation of a 3 story brownstone? I know this varries based on structual integrity, etc. Bonus question:…
I’m looking to buy a fixer-upper on a somewhat limited budget, and I have two questions. First whats the best way to go about getting an FHA loan? Second, what woudl be a ballpark range for a gut renovation of a 3 story brownstone? I know this varries based on structual integrity, etc. Bonus question: how long should I budget for a gut reno once it’s underway. New to the forums so forgive me if this has been done before and i missed it.
THANKS!!!!
Actually the 2009 2 Unit Loan Limit : $934,200 on FHA. I am a renovation specialist with Wells Fargo.
Visit me at http://WWW.FHA203KEXPERTS.COM
There’s a lot of info online about the FHA lending program. You can also try Miriam Ruiz at Wells Fargo. The tricky thing about is that you are limited to the amount that you can borrow for the purchase and renovation: 875k for a two family, so if you don’t have a sizeable down payment, it can be hard to get all that onde on that budget. Good luck.
As others have said, the range is huge and depends on both how much work you need to do and the extent of that work. As an architect I have worked on a range of ‘gut renovations’ from $75psf to $500psf. Two years ago we renovated our own four story house in BedStuy for $75psf (construction costs, not including soft costs) and had tenants in 3 1/2 months after closing on the property! That was a gut renovation including all new electrical, plumbing, and totally revised layouts (changing from an SRO to a 3 family); we kept the costs down by keeping finishes simple and not doing anything luxurious (no central air, etc). And we have a great contractor that we work with. I’d be happy to answer any questions: tbraude at gmail dot com.
I am probably going to wind up spending about $120K, at the end of a process that should take about three or four years. Lots of structural damage… but relatively simple taste.
As an Architect I can comment on your second and third questions. Unfortunately, I get questions like this all the time from prospective clients and there are simply too many variables to give you accurate answers. We would need nuch more information on the condition of the existing space: Is structural work necessary, what is the extent of mechanical work required, will the layout of spaces change significantly or will you be simply upgrading finishes and appliances, will electrical upgrades be necessary, what is the condition of the roof and any other exterior features, etc. It can range from $200,000 to $2 million, depending on the scope.
Regarding the schedule, you can safely assume that a full gut renovation can last from 8 months to a year (if significant mech and structural work is required). This also varies based on the scope, but I think this is a realistic projection for a 3 story renovation with significant upgrades and changes.
It would not hurt to bring in an architect early on to review your intentions and do preliminary estimate (before you even purchase the property).
Best of luck. If you have further questions, please do not hesitate to email me at 60designers@gmail.com
cost: $200,000 to $600,000, depending on finishes, fixtures, appliances, structural work, restoration/details, etc.
time: six months to 3 years, depending on speed of plan approval, skill/attention/coordination skills of contractor or construction manager, etc.
and yes, this has been asked and answered many times before — try a search for “gut” or browse posts in the category “renovation.”