I'm a Realtor and I'm working with a client who is contemplating a similar deal. Bank-owned half-finished house. Now this is a slab house. All of the (extensive) millwork is finished. 3,000 sq ft living, plus large patios (one covered, one uncovered - he was thinking of brick pavers for both but he's scrapped that idea -- too $$$). Air handlers are in, but he'd need the three outside compressor units. No cabinets, flooring or lighting in. Tubs but no other plumbing fixtures. All tiled large master shower connected to tiled tub deck (not tiled yet -- to be tiled). He has gotten estimates from 2-3 contractors ranging from $125,000-165,000. But I believe the $125,000 is for him technically subbing it out himself, and just paying the "contractor" to "oversee" things. I'd kind of agree with the previous poster about it not being the ideal stage at which to come in and take over completing a house. If my client and the bank actually do come to an agreement, I will be recommending major inspections. Then again, with no electricity or plumbing fixtures hooked up, not sure what an inspector is actually going to find.

If you are going to do a lot of the work yourself, and only hire out the work for some specific licensed trades and work that specialty equipment or tools or skill are needed, you sound similar to what my husband and I have done on approx 5 houses in the last 10 years, all similar in age and character and condition to the one you are looking at. I know prices vary by region, and I'm probably opening myself up to a bunch of critical comments from people saying either we spent too much and wasted money in one area, or too cheap in another... But I want to try to offer some help in a possible pricing to help you decide if you want to go down this path or not... P - hire a plumber: varies with the house and whether you add a bathroom, but plan for $5k, assumes they take care of big stuff, roughin the shower, code, venting, but you DIY fixture installations - Hire an electrician: similar to plumbing, varies with the house, but assume $3k for them to do layout changes, code corrections, but you DIY fixture installations - if a roof is needed and/ or painting touchups, fascia repairs, etc: big variable but for this assume $8k minimum - assumes siding is in good condtition, $0k or add more - assumes heat / air conditioning / hot water heater are all in good condition, or add more - assumes water in the basement isn't a problem, or add more for dealing with mold, draintile, grade corrections outside, etc. - Hire a hardwood floor refinisher: $2k - assumes hardwood everywhere except kitchen and bathrooms, otherwise add more for carpet/ new floor in other rooms - windows: Varies a lot if you repair or replace, and if replace what quality, but for this rough estimate figure $200 per window x probably around 20 windows would either pay for repair supplies and hardware, or a cheap vinyl replacement, DIY install. $4k - Kitchen materials: ikea cabinets $4k with butcher block countertops, or add $3-4k for granite, $3k cheap ss appliances, $1k tile and paint, you DIY all installation - Bathroom materials: $2k ( tub/shower, vanity, faucets, ligt fixtures, tile), You DIY all installation, Looks like times two in this house plus $1k powder room= $5k., all DIY installation except for the roughin plumbing notes above - light and door fixtures : $1k, all DIY install - basic supplies: Paint, sheetrock, spackle, sanding pads, hinges, eurythane : $3k, all DIY install - holding costs: depends on tax rates, if you need to heat/cool, etc but if you figure $400/ month for 3-4 months (this would have you and your husband there probably 20-30/hrs a week if you are moderately competent but not streamlined professionals at this), adds a bit more than $1k, more if you have a loan with interest accruing. Soooo.... If I add all of this up, I get at least $40k of fixup costs which is you doing almost all of the work. And I should note these are economical material and finishing choices. And assumes you already own all the tools needed to do the work. If you pay $25 k plus $1k in closing costs (no mortgage fees) you'd have at least $66k in to it. If you later sell for $125k, after real estate commissions and another 3 months of holding costs, you may get $110k. So- best case scenario i think you might potentially take home a little over $40k for 3+ months of work. Or, it could be a lot less profit if you hire out more of the work, if you add a 10% error budget ($4k), need new HVAC ($6k), mold/water issues ($?), extensive plumbing (+$6k), exterior repairs ($3-$15k), if opening up walls triggers other code improvements like insulation and vapor barrier ($2k or more), if you add landscaping curb appeal ($1-3k)..... Hopefully you find this helpful, and can adjust this to fit the house you are looking at, your local requirements and rates, etc. It can be fun to bring these houses back to beautiful, and there can be some money to be made doing it. But it's important to run the numbers upfront so you know what you are getting in to. It also makes the work a lot more fun when you feel like you are doing it "on budget"- noone has fun when things are going wrong or you are stuck midway knowing you are loosing money on it. Another thing that my husband and I do, is we each get a $1k "allowance" to spent on "frivolous" things for the house. Well maybe "frivolous" is too spendy of a word, but for certain as you are going through the project you and you husband will have differences of opinion on what to put in the house: Maybe he likes a $2.99/sqft tile and you don't want to waste money and are ok with a $0.99 tile. If he really likes the more expensive tile, that extra $2/ sqft can come out of his "frivolous allowance". It allows both of you to have input and fun with some minor upgrades, but keeps a cap on them. Good luck if you decide to do this - either on this house or a different one! :-)

"...allowances themselves are not evil..." The problems with allowances are really very simple: Builders use allowances in various ways for their own purposes; reputable builders fully inform their owners about how the allowances were conceived; not so reputable builders do not. Many consumers, particularly first time builders, think that their construction cost in the construction contract, which included allowances is a maximum and all inclusive. When they can't get the desired and hoped for materials and work within a given allowance, many consumers are shocked, surprised and dismayed at the additional expenses reflected in the subsequent change orders. Many consumers, particularly first time builders, become overwhelmed by the myriad decisions and limited time frame for the choices which have to be made within the builder's normal construction sequencing and schedule. Waiting until construction to make all of these choices is fine for many experienced folks; it can be never-wracking from many other folks. Read the threads. At the end of the day, allowances all boil down to whether or not they are appropriate and "reasonable" for the nature and quality of the project, and if they reflect the owner's wishes. Think about the beginning of a construction project: how many consumers and builders are exactly on the same page at the time a construction contract is typed up? The too often answer is that each party is in their own individual world, based on their own similar experiences. Where does that leave consumers? If one's budget is large and flexible; If one enjoy shopping for and paying for one's own personal choices; if one's personality doesn't really mind "surprises" of a financial nature, where one or more allowances is insufficient to cover the expenses of an owner's desires; if one enjoys making selection decisions in a short time frame; if one has done all this before and understands how the process works...then allowances may not be much of a bother. On the other hand, if one wants their house priced all inclusively and wants to make the selection decisions up front and have them reflected in the total cost and schedule. the strategy is simple: eliminate all allowances. Everyone has a choice. But knowledge is power!

Material+Time+Labor Only you can know what you need and how much it will cost, how much time it will take you and what is your time worth, what is your overhead, and what your profit margin is. If you cannot figure out a price, this job is not for you... Because doing a job based on someone's price you will lose your pants and most likely you will end up screwing your customer, seen that happen too many times. Some would come in, and tell the customer they will beat anyone's price to get a foot in the door, and when they start the job they will run short and when that happens, they will start cut corners, ask for more money and if they don't get it, they will abandon the job and when that happens, consumer is screwed because they cannot find anyone else to finish a job started by someone else. So don't put yourself in this situation. Good luck