How do you cost out a project for FHA 203k project?
HUD handbooks provide the answer to this question. Your choices are R.S. Means or HomeTech Publishing. Years ago I took a week long class from R.S. Means at a cost of about $1,500 as I recall, to be able to tell 203k consultants all over the country if it was a good source for costing. It was the most boring class I had ever taken, dry, very dry study material, only to find out their costing data was geared toward mass renovation of residential properties like 100 - 1,000 homes at a time and it just was too, way too high for what we do as consultants doing one house or 2-4 unit building at a time. It just wasn't practical.
Having said that, I wish I had take the 30-minute tutorial on the HomeTech site, I would have learned allot more and for a whole lot less money.
Here is what HUD says about it...
"Handbook 4240.4 REV-2 (para. 3-2.F.) discusses the use of cost data publications from R.S. Means "Repair and Remodeling Cost Data" book and the "Home -Tech Remodeling and Renovation Cost Estimator." The cost estimates include overhead and profit for a contractor or a mortgagor doing their own work. Where the HUD Field Office has determined that these cost estimating books are excessive for certain localities in their jurisdiction, they now have the authority to require further justification from borrowers to ensure the cost estimates are reasonable. The Field Office will notify the 203(k) lender and plan reviewer if additional information is required for a particular case. To guard against over-estimates of rehabilitation costs, the amount of funds requested for a draw inspection cannot exceed the actual cost of rehabilitation and/or the actual percent of completion of the rehabilitation. On each draw, the mortgagor must certify the actual costs and completion percentage for each line item used on the revised Draw Request, Form HUD 9746-A (Attachment 2)..."
If you would like a copy of the HomeTech Remodeling & Renovation Cost Estimator please use this code "MYTEAM" for your discount.