How to Estimate Rehab Costs for a House Flip
Accurate rehab cost estimation is one of the most critical skills for any house flipper. Underestimate, and your profit evaporates. Overestimate, and you miss good deals. Here's how professionals approach it:
The Three Levels of Rehab
- Cosmetic ($10-20/sq ft) — Paint, carpet, cleaning, minor fixture updates. The structure, systems, and layout stay the same.
- Standard Rehab ($25-50/sq ft) — New kitchen and bathrooms, new flooring, updated electrical panels, fresh landscaping. Most house flips fall here.
- Full Gut ($50-100+/sq ft) — Down to studs. New plumbing, electrical, HVAC, layout changes, structural work. High risk but potentially high reward.
Average Rehab Costs by Room
| Room | Cosmetic | Standard | Full Gut |
|---|---|---|---|
| Kitchen | $5,000-8,000 | $12,000-20,000 | $25,000-50,000 |
| Bathroom (Full) | $2,000-4,000 | $6,000-12,000 | $15,000-30,000 |
| Flooring (1,200 sq ft) | $3,000-5,000 | $8,000-12,000 | $15,000-20,000 |
| Exterior/Siding | $3,000-5,000 | $8,000-15,000 | $20,000-35,000 |
| Roof | Repair: $1,000-3,000 | Replace: $8,000-12,000 | Replace: $15,000-25,000 |
Always Add a Contingency
Experienced investors add 10-20% on top of their estimate for surprises — and surprises always show up. Foundation issues, hidden water damage, termite damage, and code violations are common culprits. A 10% contingency is the minimum; 15-20% is safer for older homes or gut rehabs.
Once you have your rehab estimate, use our 70% rule calculator to determine your maximum offer, or run a full deal analysis with holding costs and financing.