# Rehab Budget & Renovation Estimator Itemize construction renovation budgets, material grade choices, and contingency buffers to plan rehab costs for property flipping projects. --- - **Canonical URL:** https://dothecalculation.com/calculators/property-flipping-rehab-budget-calculator - **Category:** Real Estate & Property - **Publisher:** Do The Calculation (https://dothecalculation.com) - **Cost:** Free, no account or sign-up required - **Privacy:** Runs entirely in the browser; inputs are never sent to a server - **Methodology:** https://dothecalculation.com/methodology --- ## Rehab Budget & Renovation Cost Estimator Itemize construction renovation budgets, material grades, and contingency buffers for property flips. - Economy, Mid-Range, and High-End construction rates - Detailed siding, roofing, and fixture costs - Calculate contingency reserve buffers ## Building a Property Rehab Budget Underwriting a property flip requires a detailed construction budget. Renovation errors can quickly eliminate profit margins. rehab estimates typically combine square-footage base rates with specific project additions: 1. **Base Interior Rehab**: Cost to paint, install flooring, trim, drywall repairs, and light fixtures, calculated by square footage and finish grade (Economy, Mid-Range, or High-End). 2. **Kitchen & Bath Upgrades**: Major wet area renovations requiring plumbing, cabinetry, and tile work. 3. **Mechanicals & Envelope**: Structural systems like roofs, siding, HVAC, electrical panels, and plumbing mainlines. 4. **Contingency Buffer**: A reserve fund (typically 10% to 20% of the subtotal) to cover unexpected repairs (mold, structural issues) found during demolition. $$\text{Total Rehab Budget} = \text{Subtotal Costs} \times \left(1 + \frac{\text{Contingency \%}}{100}\right)$$ ## How to Use This Calculator Enter the property's total square footage and select an interior finish grade (Economy, Mid-Range, or High-End) — this sets the base per-square-foot cosmetic rehab rate. Add siding and roofing costs per square foot, the number of bathrooms and their finish grade, and a kitchen finish grade. Toggle whether the project needs a full HVAC replacement, an electrical panel upgrade, or a plumbing re-pipe, then set a contingency percentage (typically 10% to 20%) to buffer against issues found during demolition. The calculator sums every line item into a subtotal, applies the contingency, and returns the total rehab budget and cost per square foot. ## Worked Example: Rehabbing a 2,000 Sq Ft Flip A flipper buys a 2,000 sq ft house needing a mid-range renovation. At the mid-range interior rate of $45/sqft, the base interior cost is $90,000. Siding at $5/sqft and roofing at $8/sqft add $10,000 and $16,000. A mid-range kitchen adds $12,000, and two mid-range bathrooms add $12,000 more ($6,000 each). The project also needs a new HVAC system ($6,500) and an electrical panel upgrade ($4,500), but the plumbing is left as-is. Adding these line items together gives a construction subtotal of $151,000 ($90,000 + $10,000 + $16,000 + $12,000 + $12,000 + $6,500 + $4,500). With a 10% contingency reserve ($15,100), the total rehab budget comes to $166,100 — about $83 per square foot. That per-square-foot figure is what the investor plugs into a 70% rule check ([House Flipping Calculator](/calculators/house-flipping-calculator)) or an offer negotiation against the property's After Repair Value. ## Related Calculators Feed this rehab budget into the [House Flipping Calculator](/calculators/house-flipping-calculator) to see projected profit and the Maximum Allowable Offer under the 70% rule, or into the [BRRRR Calculator](/calculators/brrrr-calculator) if you plan to refinance and hold the property as a rental instead of selling it. Once the flip is complete, estimate transaction costs with the [Closing Cost Estimator](/calculators/closing-cost-estimator). For a quicker MAO-only check without the full line-item breakdown, use the [After Repair Value Calculator](/calculators/after-repair-value-calculator). ## Frequently asked questions ### How do you calculate a property rehab budget? Combine square footage base rates for general cosmetic work with specific itemized costs for major systems (roof, HVAC, kitchen, baths) and add a 10% to 20% contingency buffer. ### What is a typical cost per square foot for a home renovation? Cosmetic renovations range from $15 to $35 per square foot. Mid-range renovations (updating kitchens/baths) cost $40 to $75 per square foot. High-end custom renovations can exceed $100 to $150 per square foot. ### Why is a contingency buffer necessary in house flipping? Distressed properties often have hidden issues (mold, water damage, outdated wiring) that are only discovered during demolition. A 10% to 20% contingency ensures you have the budget to cover these costs. ### How much does it cost to remodel a kitchen? An economy kitchen remodel costs $5,000 to $8,000. A mid-range remodel (semi-custom cabinets, granite counters) costs $12,000 to $20,000. A high-end kitchen remodel easily exceeds $30,000 to $50,000. ### Should I replace the HVAC system when flipping a house? If the system is over 12 to 15 years old, replacing it reduces buyer objections and increases appraisal value. Newer systems are also more energy-efficient. ### What is the 70 percent rule in house flipping? The 70% rule suggests you should pay no more than 70% of the property's After Repair Value (ARV) minus estimated rehab costs. Maximum Purchase Price = (ARV * 0.70) - Rehab Cost. ### How do permit fees affect the rehab budget? Permits and inspection fees typically add $500 to $3,000 to the budget, depending on local municipal rules and the scope of structural work. ### What is cosmetic vs structural rehab? Cosmetic rehab involves paint, carpet, and fixtures. Structural rehab involves foundation repairs, framing, roof replacements, and mechanical upgrades, requiring permits and licensed contractors. ### Should I hire a General Contractor or manage the sub-contractors myself? Hiring a General Contractor (GC) adds 15% to 25% in builder markup but saves time and coordinates licensing. Managing subs yourself saves money but requires building knowledge and daily site supervision. ### How do carrying costs affect my flipping budget? Carrying costs (interest, insurance, taxes, utilities paid while renovating) accumulate monthly. The longer the rehab takes, the lower your profit margin, making schedule management critical. ## Related concepts - **70% Rule in Real Estate** — A screening formula used to estimate the maximum purchase price for a profitable flip. - **Scope of Work (SOW)** — A detailed construction document outlining all materials, labor, permits, and schedules for the renovation. - **Capital Improvement** — Any permanent structure addition or property renovation that increases the asset's value and extends its useful life. ## Related guides - [House Flipping Guide: How to Calculate ARV, 70% Rule, and Profit Margin](https://dothecalculation.com/blog/property/house-flipping-guide) — Underwrite house flips with professional precision. Learn how to calculate after-repair value (ARV), maximum allowable offer (MAO), repair contingency, and financing drag. ## Related calculators - [House Flipping Calculator](https://dothecalculation.com/calculators/house-flipping-calculator) — Calculate house flipping profit potential, including maximum allowable offer, renovation budget, holding costs, and expected ROI for property flips. - [After Repair Value (ARV) Calculator](https://dothecalculation.com/calculators/after-repair-value-calculator) — Calculate ARV, the 70% rule maximum allowable offer, and projected flip profit from purchase price, repair budget, and selling costs. - [BRRRR ROI Calculator](https://dothecalculation.com/calculators/brrrr-calculator) — Evaluate Buy, Rehab, Rent, Refinance, Repeat investment deals by calculating cash left in the deal, equity created, and overall return on investment. - [1031 Exchange Tax Deferral Calculator](https://dothecalculation.com/calculators/1031-exchange-tax-calculator) — Calculate capital gains tax liability, depreciation recapture, and adjusted basis when deferring taxes through an IRS Section 1031 exchange. - [Broker & Agent Commission Split Calculator](https://dothecalculation.com/calculators/real-estate-agent-commission-calculator) — Calculate real estate listing and buying commissions and see how they split between agents and brokers on a home sale transaction. - [Concrete Calculator](https://dothecalculation.com/calculators/concrete-calculator) — Estimate concrete volume, bag counts, and material costs for slabs, footings, and other construction projects instantly for free. --- _This calculator is designed for educational and planning purposes only. Real estate valuations, operating expenses, tax treatment (including 1031 exchanges and installment sales), mortgage interest rates, and loan underwriting criteria vary widely by market, property type, credit profile, and local regulations. Always consult a licensed real estate broker, CPA, tax attorney, or financial advisor before making investment decisions._ --- _Source: [Do The Calculation](https://dothecalculation.com/calculators/property-flipping-rehab-budget-calculator). Quote freely with attribution and a link to this page._