A rehab cost estimate is a renovation budget built from the work required, local contractor quotes, and a separate contingency.
Frequently asked questions
How much does a house rehab cost?
Rehab costs vary enormously by scope, market, and property condition. As a rough US national benchmark: light cosmetic rehabs (paint, flooring, fixtures, landscaping) run $15–$30 per square foot. Mid-level rehabs adding kitchen and bathroom updates run $35–$65 per square foot. Full gut renovations stripping everything to the studs run $75–$150+ per square foot. These are contractor labor and material costs — they don't include your carrying costs, permit fees, or GC overhead. Always get two itemized bids before committing capital, and add a 10–20% contingency for what the inspection misses.
What is the difference between cosmetic and structural rehab?
Cosmetic rehab addresses surface-level finishes that don't require permits or structural changes: paint, flooring, fixtures, appliances, countertops, cabinets, landscaping, and cosmetic bathroom updates. Structural rehab addresses the bones of the building: foundation repair, load-bearing wall removal, roof replacement, HVAC replacement, electrical panel upgrade, or full plumbing re-pipe. Structural work is more expensive, takes longer, and almost always requires permits — which adds cost and timeline risk. Cosmetic-only flips are faster and more predictable; structural work opens the door to higher ARV but also higher rehab risk.
How much contingency should I add to my rehab budget?
Most experienced flippers add a 10–15% contingency to their contractor bid for properties with known condition and a complete scope of work. For older properties (pre-1980), distressed properties, or deals where you haven't had a full inspection, add 20–25%. The contingency covers: items the inspection missed (hidden mold, asbestos, old wiring, plumbing leaks behind walls), contractor scope creep, material price increases, and permit fees that come in higher than estimated. A contingency isn't pessimism — it's the single most important line item in a well-underwritten rehab budget.
What are the highest-cost items in a typical rehab?
The 'big ticket' items that move a rehab budget dramatically: roof replacement ($8,000–$22,000 for most residential roofs), HVAC system replacement ($5,000–$18,000 for full system), kitchen remodel ($12,000–$45,000 depending on scope and finishes), full bathroom remodel ($8,000–$20,000), foundation repair ($3,000–$30,000+), electrical panel upgrade or full rewire ($3,000–$15,000), full plumbing re-pipe ($3,500–$12,000). Any combination of these on a single property creates a 'heavy rehab' and requires experienced project management. Walk away from the deal or get very specific contractor bids before committing capital.
Should I manage the rehab myself or hire a general contractor?
Self-managing ('owner-builder') can save 15–25% on labor costs but requires significant time, trade knowledge, and a reliable sub network. Most first-time flippers who self-manage underestimate the time cost and end up with blown timelines that erase the labor savings through extended carrying costs. Hiring a licensed GC adds overhead (typically 10–20% of total cost) but gets the work done faster and shifts scheduling burden off you. The math often favors a GC for investors with full-time jobs or multiple simultaneous projects. Whichever path you choose, require a line-item written bid and a signed contract with a project timeline before work starts.