A rehab estimate is a detailed projection of the costs required to repair, renovate, or restore a property to a target condition. It includes materials, labor, permits, contingencies, and sometimes holding costs during construction. Accurate rehab estimating is the difference between projected profit and actual loss on fix-and-flip and value-add deals.
Rehab estimate real estate investing lives or dies on this number. Overestimate and you pass on good deals. Underestimate and you eat into profit or lose money entirely. This guide gives you a framework for estimating rehabs systematically.
Key takeaway
Your rehab estimate is a ceiling, not a target. Build in contingency, get multiple bids, and assume you will find something unexpected once walls open up.
Rehab scope levels
- Cosmetic ($10–$20/sqft): Paint, flooring, fixtures, landscaping. No structural or mechanical work.
- Light ($20–$40/sqft): Cosmetic plus minor kitchen/bath updates, some electrical or plumbing fixes.
- Medium ($40–$70/sqft): Kitchen and bath gut, HVAC replacement, partial electrical or plumbing updates.
- Heavy/Gut ($70–$120+/sqft): Full gut, structural repairs, foundation work, complete MEP (mechanical, electrical, plumbing).
Core line items to estimate
- Demolition and haul-away: $2–$5/sqft
- Framing and carpentry: $15–$35/sqft
- Electrical: $3,000–$12,000 per panel/rewire
- Plumbing: $2,000–$8,000 per bath/kitchen
- HVAC: $4,000–$8,000 per system
- Roof: $5,000–$15,000 depending on size and material
- Windows: $300–$800 per window
- Kitchen: $10,000–$40,000 depending on scope
- Bath: $5,000–$20,000 per bath
- Flooring: $3–$12/sqft installed
- Paint: $2–$4/sqft (interior + exterior)
- Permits: $500–$3,000 depending on scope
The estimating process
- Walk the property. Take photos and video. Note every visible issue.
- Scope the work. Decide what stays, what goes, and what gets upgraded.
- Get contractor bids. Three bids minimum for major trades.
- Add contingency. 15–20% for unknowns. Increase to 25% for older properties.
- Build your budget. Line-item every cost. Include permits, dumpsters, and cleanup.
- Cross-check against ARV. Ensure rehab costs leave adequate profit margin.
When you find a deal on OffMarket Deck, use the property type, photos, and description to triage rehab scope before visiting. Cross-check your estimate against ARV and the 70% rule to decide if the deal deserves a site visit and contractor bids.
