How to Estimate Rehab Costs Like a Pro: Complete Room-by-Room Guide

Quick Summary: Accurately estimating rehab costs is critical for flip and BRRRR investors—underestimate by 20% and your profit disappears. Learn detailed per-unit pricing for every component from cosmetic updates to full gut rehabs, plus contractor markup structures and contingency planning. Calculate after-repair value (ARV) and total project costs with the Rental Property Calculator to ensure your deals pencil out before you buy.

The #1 reason real estate deals fail isn't finding properties—it's blown renovation budgets. Underestimate rehab costs and you'll either lose money or get stuck with a property you can't afford to finish.

This guide gives you room-by-room pricing, cost-saving strategies, and real examples so you can budget accurately from day one.

The Three Levels of Rehab

Level 1: Cosmetic (Light Rehab)

What it includes:

• Paint
• Flooring (carpet, luxury vinyl)
• Light fixtures
• Hardware (knobs, handles)
• Minor landscaping
• Deep cleaning

Typical cost: $10-25/sq ft Timeline: 2-4 weeks When to use: Tenant-ready rentals, quick flips in good markets

Level 2: Moderate Rehab

What it includes:

• Everything in Level 1, plus:
• Kitchen cabinet refinish or replace
• Countertops
• Appliances
• Bathroom vanities
• Some plumbing/electrical updates
• HVAC service/repair
• Exterior paint

Typical cost: $25-50/sq ft Timeline: 4-8 weeks When to use: Most rental property renovations, standard flips

Level 3: Full Gut Rehab

What it includes:

• Everything in Levels 1-2, plus:
• Full kitchen gut and rebuild
• Full bathroom gut and rebuild
• All new plumbing
• All new electrical
• New HVAC
• Structural repairs
• New roof
• Foundation work
• Major exterior work

Typical cost: $50-100+/sq ft Timeline: 8-16+ weeks When to use: Distressed properties, major value-add, luxury flips

Kitchen Renovation Costs

The kitchen is the highest-return room in most renovations. Here's detailed pricing:

Cabinet Options

Rule of thumb: Budget $3,000-5,000 for cabinet refreshmiddleware for standard rental, $8,000-12,000 for flip.

Countertops

Recommended: Quartz for flips (durability + looks), granite or laminate for rentals (cost-effective).

Appliances

Budget Package (Rental): $1,500-2,500

• Fridge: $500-800
• Stove: $400-600
• Dishwasher: $300-500
• Microwave: $100-200

Mid-Range Package (Flip): $3,000-5,000

• Stainless steel appliances
• Energy efficient
• Recognizable brands (Whirlpool, GE, Samsung)

High-End Package (Luxury Flip): $8,000-15,000+

• Premium brands (Viking, Wolf, Sub-Zero)
• Professional-grade
• Built-in refrigeration

Pro tip: Never buy top-tier appliances for rentals—they break, and tenants don't pay more for them.

Kitchen Flooring

Best choice: LVP for rentals (waterproof, durable, cheap), tile for flips (premium look).

Sink & Faucet

• Budget sink: $100-250
• Mid-range undermount: $200-400
• Farmhouse sink: $300-800
• Budget faucet: $80-150
• Mid-range faucet: $150-300

Total sink/faucet: $300-1,000

Backsplash

• Peel-and-stick: $1-3/sq ft ($50-150 for typical kitchen)
• Ceramic tile: $5-10/sq ft ($250-500 installed)
• Subway tile: $7-15/sq ft ($350-750 installed)
• Glass/designer: $15-40/sq ft ($750-2,000+ installed)

Recommendation: Subway tile for flips, peel-and-stick or simple ceramic for rentals.

Total Kitchen Budgets

Budget Rental Kitchen (Cosmetic): $4,000-7,000

• Paint cabinets: $800
• Laminate counters: $800
• Budget appliances: $2,000
• LVP flooring: $600
• Sink/faucet: $300
• Hardware/lighting: $500

Standard Flip Kitchen (Moderate): $12,000-18,000

• Refinish or replace cabinets: $6,000
• Quartz counters: $3,000
• Mid-range appliances: $4,000
• Tile flooring: $1,200
• Backsplash: $600
• Sink/faucet: $600
• Lighting/hardware: $1,000

Full Gut Kitchen (High-End Flip): $25,000-40,000+

• Custom cabinets: $15,000
• High-end counters: $5,000
• Premium appliances: $10,000
• High-end flooring: $2,500
• Designer backsplash: $1,500
• Sink/faucet/fixtures: $2,000
• Lighting: $2,000

Bathroom Renovation Costs

Bathrooms are expensive per square foot but deliver strong returns.

Vanity & Sink

Don't forget: Faucet ($80-300), mirror ($50-200), lighting ($100-400)

Toilet

• Budget toilet: $100-200
• Mid-range comfort height: $200-400
• Dual-flush, modern: $300-600
• Wall-mounted (luxury): $500-1,200+

Recommendation: $150-250 toilets are the sweet spot for most investors.

Shower/Tub

Refinish Existing:

• Reglazing: $400-700 (3-5 year lifespan)
• Liner: $1,500-3,000 (20+ year lifespan)

Replace:

• Alcove tub: $400-800 (tub) + $800-1,500 (install) = $1,200-2,300
• Tub/shower combo: $500-1,200 + $1,000-2,000 install = $1,500-3,200
• Tile shower (3x5): $2,500-6,000 (full retile)
• Walk-in/luxury shower: $5,000-12,000+

Tile Surround:

• Ceramic tile: $8-15/sq ft installed
• Subway tile: $10-18/sq ft installed
• Porcelain/designer: $15-30/sq ft installed

Bathroom Flooring

• Vinyl: $2-5/sq ft (50 sq ft bath = $100-250)
• Ceramic tile: $5-10/sq ft ($250-500)
• Porcelain tile: $8-15/sq ft ($400-750)
• Heated tile: Add $800-1,500 (luxury only)

Total Bathroom Budgets

Cosmetic Bathroom (Rental): $2,000-4,000

• Paint: $300
• Vanity/sink/faucet: $500
• Mirror/lighting: $300
• Toilet: $200
• Refinish tub: $600
• Vinyl flooring: $400
• Hardware/accessories: $200

Moderate Bathroom (Flip): $5,000-8,000

• Vanity/sink: $1,000
• Toilet: $300
• Tile shower walls: $2,000
• Tile floor: $500
• Mirror/lighting: $600
• Paint/hardware: $400

Full Gut Bathroom (High-End): $12,000-20,000+

• Double vanity: $2,000
• Walk-in tile shower: $6,000
• High-end toilet: $500
• Heated tile floor: $2,000
• Lighting/fixtures: $1,500
• Custom tile/design: $3,000
• Plumbing/electrical: $3,000

Rule of thumb:

• Half bath: $2,000-4,000 (cosmetic to moderate)
• Full bath: $5,000-10,000 (standard renovation)
• Master bath: $10,000-20,000 (full renovation)

Flooring Throughout the House

Living Areas

Best for rentals: LVP (waterproof, durable, affordable) Best for flips: Engineered or solid hardwood (perceived value)

Stairs

• Carpet stairs: $40-80/step
• Hardwood stairs: $100-200/step
• Refinish existing: $40-75/step

Average home (13 steps): $500-2,600

Paint (Interior & Exterior)

Interior Paint

DIY Costs:

• Paint: $30-60/gallon (covers ~400 sq ft)
• Primer: $25-40/gallon
• Supplies: $100-200
• 1,500 sq ft home: $400-800 DIY

Professional Painting:

• Budget: $1-2/sq ft ($1,500-3,000 for 1,500 sq ft)
• Standard: $2-4/sq ft ($3,000-6,000)
• High-end/multi-color: $4-6/sq ft ($6,000-9,000)

Per room (10x12):

• DIY: $50-100
• Pro: $200-400

Best value: DIY if you have time, pro for whole-house projects.

Exterior Paint

House siding:

• 1,500 sq ft: $3,000-6,000
• 2,500 sq ft: $5,000-10,000
• Includes: Prep, 2 coats, trim

Factors:

• Condition (peeling = more prep = higher cost)
• Stories (two-story = scaffolding = +30-50%)
• Material (wood = more prep than vinyl)

HVAC Systems

Repair vs. Replace

Repair: $200-1,500

• Refrigerant recharge: $200-500
• Fan motor: $300-600
• Capacitor: $150-400

Replace:

Ductwork:

• Repair: $500-2,000
• Replace: $2,000-5,000

Rule: If HVAC is 15+ years old or needs $1,500+ repair, replace it.

Plumbing & Electrical

Plumbing

Common Repairs:

• Re-pipe house (copper/PEX): $4,000-10,000
• Water heater (40-50 gal): $800-1,500
• Tankless water heater: $2,000-4,500
• Sewer line (trenchless): $3,000-8,000
• Sump pump: $500-1,200

Per-fixture costs:

• New toilet install: $200-400 (plus fixture)
• New sink/vanity: $300-600 (plus fixture)
• Shower valve replacement: $300-800

Electrical

Panel & Service:

• 100-amp to 200-amp upgrade: $1,500-3,000
• New electrical panel: $1,000-2,500
• Full house rewire (1,500 sq ft): $6,000-12,000

Per-item costs:

• New outlet: $100-200
• New switch/light fixture: $100-300
• GFCI outlet (bathroom/kitchen): $150-250
• Ceiling fan install: $150-400

Code upgrades: Budget 10-20% extra if home is pre-1980 (likely needs updates).

Roofing

Asphalt Shingles (Most Common)

Add 20-40% for:

• Steep pitch (harder to work)
• Multiple levels
• Skylights/chimneys (complexity)
• Wood shake removal (disposal costs)

Other Roofing Materials

• Metal roofing: $12,000-25,000 (lasts 50+ years)
• Tile: $15,000-30,000 (luxury, heavy)
• Flat roof (TPO/EPDM): $5,000-12,000

Repairs:

• Minor leak: $300-1,000
• Multiple leaks/damage: $1,500-4,000
• If 20% of roof needs repair, replace the whole thing

Exterior & Landscaping

Siding

Repair/Paint:

• Pressure wash: $200-500
• Paint: $3,000-10,000 (see paint section above)
• Repair wood rot: $500-2,000

Replace:

• Vinyl siding (1,500 sq ft): $6,000-12,000
• Fiber cement (Hardie): $10,000-18,000
• Brick veneer: $15,000-30,000

Windows & Doors

Windows:

• Single window (vinyl): $400-800 installed
• Whole house (10-15 windows): $5,000-12,000
• Energy-efficient (double-pane, low-E): $600-1,200 each

Doors:

• Entry door: $500-2,000 installed
• Sliding glass door: $1,200-3,000
• Garage door: $800-3,000 (standard double)

Landscaping

Basic Rental Landscaping: $500-2,000

• Mulch/refresh beds: $300-800
• Tree/shrub trimming: $200-600
• Lawn care/sod repair: $200-800

Flip Curb Appeal: $2,000-5,000

• New sod/landscaping: $1,500-3,000
• Decorative beds/plants: $800-1,500
• Hardscape (walkway/patio): $1,000-3,000

Major Work:

• Deck (12x12): $3,000-8,000
• Patio (12x12 concrete): $1,500-3,500
• Fence (wood, 150 linear ft): $2,500-4,500
• Driveway (asphalt): $3-7/sq ft ($3,000-7,000 typical)

Permits & Inspections

When you need permits:

• Structural changes
• Electrical/plumbing work
• HVAC replacement
• Roof replacement (some jurisdictions)
• Addition/major renovation

Typical permit costs:

• Minor (electrical outlet): $50-150
• Moderate (bathroom remodel): $200-500
• Major (addition, full gut): $1,000-5,000

Inspection costs: $300-600 per inspection (usually 2-3 needed per permit)

Budget 3-5% of construction costs for permits/inspections

Contractor Costs & Markup

How Contractors Price

Labor + Materials + Markup:

Example kitchen renovation:

• Materials: $8,000
• Labor (200 hours × $50/hr): $10,000
• Subtotal: $18,000
• Contractor markup (20%): $3,600
• Total project: $21,600

Typical Markup Structures

Markups cover:

• Project management
• Insurance/bonding
• Overhead
• Profit
• Warranty

Labor Rates by Trade

Hidden Costs & Contingencies

The 10 Most Common Budget Killers

1. Hidden water damage

• Looks fine until you open walls
• Budget: 10-15% contingency for older homes

2. Structural issues

• Sagging floors, foundation cracks
• Budget: $5,000-20,000 for major repairs

3. Code upgrades

• Electrical not to code, plumbing violations
• Budget: 10-20% extra for pre-1980 homes

4. Asbestos/lead paint

• Testing: $400-800
• Abatement: $1,500-10,000+
• Budget: $3,000-5,000 for older homes

5. Permit delays

• Adds time = holding costs
• Budget: 2-4 extra weeks

6. Material price increases

• Lumber, copper fluctuate
• Budget: 5-10% buffer

7. Scope creep

• "While we're at it..." syndrome
• Prevention: Strict SOW, written change orders

8. Contractor issues

• Poor work requiring fixes
• Prevention: Vet contractors, check references

9. Weather delays

• Rain stops exterior work
• Budget: Extra 1-2 weeks in winter

10. Theft/vandalism

• Copper, appliances stolen
• Prevention: Secure site, insurance

Standard Contingency Budget

Example:

• Estimated rehab: $40,000
• Contingency (15%): $6,000
• Total budget: $46,000

Complete Property Examples

Example 1: Budget Rental (Cosmetic)

Property: 1,200 sq ft, 3bed/2bath, built 1985 Strategy: Light rehab for rental Timeline: 3 weeks

Room-by-Room Costs:

Cost per sq ft: $15.68

Example 2: Standard Flip (Moderate Rehab)

Property: 1,800 sq ft, 3bed/2.5bath, built 1995 Strategy: Moderate renovation for retail sale Timeline: 6-8 weeks

Room-by-Room Costs:

Cost per sq ft: $35.71

Example 3: Full Gut Rehab

Property: 2,200 sq ft, 4bed/3bath, built 1960 Strategy: Extensive renovation for high-end flip Timeline: 12-16 weeks

Major Systems & Spaces:

Cost per sq ft: $83.45

Cost-Saving Strategies

1. Buy Materials Yourself

Contractor markup on materials: 10-30%

Example:

• Contractor quote: $10,000 materials + labor
• Materials: $6,000
• Labor: $4,000
• Your cost if you buy materials: $6,000 + $4,000 = $10,000 (vs. contractor buying at $7,800 + $4,000 = $11,800)
• Savings: $1,800

Where to buy:

• Home Depot/Lowe's: Convenience, decent prices
• Local suppliers: Better prices on bulk
• Discount/scratch-dent: 30-50% off for minor defects
• Habitat ReStore: Used fixtures, 50-80% off

2. DIY What You Can

High-return DIY projects:

• Painting (saves $2-3/sq ft)
• Flooring (saves $1-3/sq ft on labor)
• Landscaping (saves 50-70%)
• Demo work (saves $1-2/sq ft)
• Hardware/fixtures (saves $50-100 per item labor)

Don't DIY:

• Electrical (code/safety)
• Plumbing (leaks = disaster)
• HVAC (requires license)
• Structural (critical)
• Roofing (insurance/warranty)

3. Value Engineer Your Finishes

Good, Better, Best approach:

Pick mid-range for visible items, budget for hidden items

4. Timing & Negotiation

Best times to buy:

• Appliances: Black Friday, Memorial Day, July 4th (20-40% off)
• Materials: End of month (salespeople need to hit quotas)
• Contractors: Winter (slow season, better rates)

Negotiation tips:

• Get 3 quotes minimum
• Ask for contractor discount (if licensed)
• Bundle multiple projects
• Pay cash (some offer 3-5% discount)
• Remove labor you'll do yourself

5. Work with a Reliable Crew

Benefits of repeat contractors:

• Better pricing (steady work = discount)
• Prioritized scheduling
• Known quality
• Flexible on small issues

How to build relationships:

• Pay on time (always)
• Provide referrals
• Be clear on scope
• Respect their time

How to Estimate Any Property in 10 Minutes

The Quick Formula

1. Determine level: Cosmetic, moderate, or full gut

2. Use per-sq-ft cost:

• Cosmetic: $10-25/sq ft
• Moderate: $25-50/sq ft
• Full gut: $50-100/sq ft

3. Apply to property: Example: 1,500 sq ft moderate rehab

• Estimate: 1,500 × $35 = $52,500

4. Walk the property and adjust:

• Kitchen gut? Add $10K-25K
• Bathrooms gut? Add $8K-15K each
• New roof? Add $7K-15K
• New HVAC? Add $6K-12K
• Structural issues? Add 20-30%

5. Add contingency: 10-20% depending on condition

Quick Checklist

Print this and bring to every property:

Exterior:

• Roof condition: $___
• Siding/paint: $___
• Windows/doors: $___
• Landscaping: $___
• Driveway/walkway: $___

Kitchen:

• Cabinets: $___
• Countertops: $___
• Appliances: $___
• Flooring: $___
• Backsplash: $___

Bathrooms (each):

• Vanity/sink: $___
• Toilet: $___
• Tub/shower: $___
• Tile: $___
• Flooring: $___

Systems:

• HVAC: $___
• Electrical: $___
• Plumbing: $___
• Water heater: $___

Interior:

• Paint: $___
• Flooring: $___
• Lighting: $___

Total Estimate: $___________ Contingency (15%): $___________ Final Budget: $___________

Working with Contractors: Getting Accurate Bids

The Scope of Work (SOW)

Include in every SOW:

1. Specific materials (brand, model, color)
2. Detailed work description
3. What's included/excluded
4. Timeline
5. Payment schedule
6. Warranty
7. Who pulls permits
8. Disposal/cleanup

Example kitchen SOW:

KITCHEN RENOVATION

Cabinets:
- Remove existing cabinets
- Install stock cabinets (Home Depot Hampton Bay, white shaker)
- Include all hardware (brushed nickel)

Countertops:
- Remove existing laminate
- Install quartz countertops (Cambria, Torquay)
- 40 linear feet, standard edge

Appliances:
- Install owner-provided appliances:
  - GE stainless refrigerator
  - GE gas range
  - GE dishwasher
  - GE microwave
- Includes all electrical/plumbing connections

Flooring:
- Remove existing vinyl
- Install luxury vinyl plank (specified by owner)
- 150 sq ft

Backsplash:
- Subway tile, 3x6 white
- 30 sq ft
- Standard running bond pattern

Exclusions:
- Appliance purchase (owner provides)
- Any structural modifications
- Electrical panel upgrades if needed

Timeline: 14 days
Payment: 30% deposit, 40% at midpoint, 30% at completion
Warranty: 1 year workmanship

Red Flags in Contractor Bids

Too low:

• 30%+ below other bids = corners will be cut
• No breakdown of materials/labor
• Cash only, no contract

Too high:

• 50%+ above other bids = overcharging or misunderstanding scope

Vague:

• "Remodel kitchen: $15,000" (what's included?)
• No materials specified
• No timeline

Payment Structure

Never pay 100% upfront

Standard schedule:

• 30% deposit (materials, start work)
• 30-40% at midpoint
• 30-40% at completion (after final inspection)

Avoid:

• Large deposits (50%+) before work starts
• Payment for incomplete work
• Final payment before final walkthrough

The Bottom Line: Budgeting for Success

Accurate rehab estimates separate profitable deals from disasters. The key principles:

1. Be conservative

• Use mid-to-high range estimates
• Always include 10-20% contingency
• Assume things will cost more and take longer

2. Get multiple bids

• Minimum 3 quotes
• Compare apples-to-apples (same scope)
• Choose based on value, not just price

3. Inspect thoroughly

• Walk every property carefully
• Look for hidden issues (water damage, structural)
• Factor in code upgrades for older homes

4. Track actual costs

• Keep detailed records of every project
• Build your own cost database
• Refine estimates over time

5. Build relationships

• Repeat contractors = better pricing
• Reliable crew = on-time completion
• Good reputation = smoother projects

Use the Rental Property Calculator to factor accurate rehab costs into your deal analysis. Input purchase price, estimated rehab, and after-repair value (ARV) to calculate your return on investment, cash-on-cash return, and whether the deal meets your criteria.

Remember: It's better to overestimate and finish under budget than underestimate and run out of money halfway through. Conservative budgets lead to profitable projects and long-term success in real estate investing.