Budgeting a Flip

 How to Budget a Flip with a Kitchen Remodel

When flipping a house to sell or rent, you know that the kitchen makes an important and powerful impression. Modern residents want a modern kitchen with nice, fresh finishes and reasonably new appliances. Many flips that update a once-shabby house have an outdated kitchen that needs work. On the other hand, experienced flippers will often warn away from kitchen remodels as a potential sink of time and money.

What this really means is that you should only commit to a kitchen remodel when you can accurately price and budget the changes you plan to make. A little retiling, a new stove, and a fresh coat of paint can go a long way. But rebuilding the cabinets and countertop could soak up almost your entire flip budget. Therefore, the first step is knowing how to price a kitchen remodel.

 

Estimated Kitchen Remodel Costs

A light remodel for a kitchen can be as affordable as $5,000 to $7,000 for fresh finishes, hardware, and an appliance or two. A full kitchen remodel, especially for a luxury property, can  cost anywhere from $50,000 to $125,000, depending on the intended extent of your kitchen transformation. 

Most flippers should not go all-in on a luxury kitchen remodel, but it's useful to know the outer limits.

 

6 Factors that Influence Kitchen Remodeling Prices

A high-end kitchen remodel cost in is defined by the materials you use and how much you rebuild your kitchen. It's one thing to repaint the cabinets and swap out some hardware, and completely different price range to rebuild the entire kitchen from the wall studs and wiring.

Let's explore the six most important elements that can affect your kitchen remodeling cost.

1) Square Footage

The size of your kitchen can help you estimate how much your desired changes will cost.

• Most ranch style homes have kitchens of 150 sq-ft.
• Two-story homes of 3000 sq-ft or more typically have 175 sq-ft kitchnes
• Large homes between 3K and 4K sq-ft often have 195 sq-ft kitchens
• Luxury and gourmet style kitchens can start at 200 sq-ft and may be even larger.

2) Cabinets

Whether or not you rebuild the cabinets will have a huge impact on your kitchen remodeling price. This is why repainting, refinishing, or even replacing the doors are popular options. Rebuilding cabinets can occupy 30% to 50% of your total remodeling budget.

If possible, avoid rebuilding the cabinets, or only replace the doors for style. Shore up the insides for stability or even re-frame the interior boxes for cleanliness, but leave the counters intact. 

3) Walls

Changing the walls requires structural adjustments and may even require the installation of wood or steel beams as well as new drywall divisions, insulation, wiring, and plumbing installations.

Changing the walls of your kitchen can add between $10,000 and $20,000 to any kitchen remodel project.

4) Flooring

Every kitchen needs an excellent floor. Hardwood floors throughout the house are extremely popular right now, providing an elegant yet continuous look. However, luxury laminate board provides the moisture and scratch resistance that a kitchen truly needs.

New kitchen floors floors can update the style, convenience, and even comfort if you choose to add padding or heated wire underneath. Your choice of flooring material will have the biggest impact on cost per square foot.

5) Counter Tops

Countertops are a notorious part of pricing a kitchen renovation. Your choice of stone and style will each influence how much finishing your kitchen remodel may cost.

Marble and granite are timeless, while concrete offers a modern style, butcherblock provides utilitarian elegance, and quartzite introduces the waterproof benefits of a manmade slab.

6) Appliances and Fixtures

New appliances can help to completely modernize a kitchen, and they can be affordably sourced for good quality and attractive kitchen equipment.  Energy-efficient appliances are a valuable long-term investment for both utility costs and a sustainable home.

 

Know Your Kitchen Flipping Costs

Take these generalized tips along with a few measurements to your contractor - or the home improvement store if you're flipping DIY. Determine the cost for materials and the time investment for minor vs major changes. In most cases, a bit of new tile, fresh paint, and a few pieces of new plumbing and cabinet hardware can make all the difference without blowing your renovation budget.

When you're ready to rent the house to new tenants after the flip, look to Leaf Management to help keep your tenants and your property in top condition.