Budget for Renovation: Back House

Posted on October 12, 2007 - Filed Under Business |

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“Planning is bringing the future into the present so that you can do something about it now” - Alan Lakein

Here is my business model for the back house.  For this project the approach went as follows:

  1. Define Objectives
  2. Define Budget
  3. Assign Workload
  4. Timeline

Objectives
The back house has to be livable.  More important, it has to look nice in order for people to want to live there.  In an extreme emergency and it must be rented out, my target price is $1200/month.  The house therefore must be worth $1200/month.

Budget
For this project, the budget was figured backwards.  The reason: the
extent of repair work needed to be known prior to putting the budget
together.  Once known, the budget fell into place.
This includes labor, material and permits (where needed).

ITEM BUDGET
Structural $7000
Electrical $2500
Plumbing $500
Kitchen $3000
Flooring $2000
Total $15000

Workload
With the aforementioned items, work assignment is broken down between the contractor and the electrician.

ITEM RESPONSIBLE
Structural Contractor
Electrical Electrician
Plumbing Plumber (via Contractor)
Kitchen Clifford
Flooring Contractor

The contractor consists of himself and three helpers (4 man crew).  The electrician is himself plus his helper (2 man crew).  The plumber has been sub-contracted from the contractor.

Timing
Work has already started and is progressing quickly.  The end date is November 9th.

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Comments

2 Responses to “Budget for Renovation: Back House”

  1. Steve Viegas on October 16th, 2007 3:28 pm

    Cliff,

    It is great to see you putting your knowledge to work. I think this is the hardest part for people is figuring out how much they need to spend to bring homes to the level they want. While the tv shows touch on it, it is never really explained well.

    Great job and I look forward to the book…

  2. Clifford on October 16th, 2007 6:49 pm

    Steve, believe it or nuts the book is still in progress. Slow progress but progress nonetheless.

    And thanks for the compliment. I am learning and sharing what I learn in the hopes that others may benefit from this.

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