Deal Analysis
How to Estimate Rehab Costs Before You Buy
Rehab is the number beginners blow most often. Here's how to estimate it before you make an offer.
June 15, 2026 · 7 min read
Estimate rehab with a per-square-foot baseline — about $20/sq ft for cosmetic work up to $60+/sq ft for a full gut — then add line items for big-ticket repairs like kitchen, baths, roof, HVAC, and electrical. Always pad 10–15% for hidden damage you can't see until walls open up.
Start with a per-square-foot baseline
| Scope | Rough $/sq ft | What it covers |
|---|---|---|
| Cosmetic | $15–$25 | Paint, flooring, fixtures, minor repairs |
| Moderate | $25–$45 | Plus kitchen/bath updates, some systems |
| Full gut | $45–$75+ | Down to studs; new systems throughout |
Multiply the rate by square footage for a fast first pass. A 1,500 sq ft moderate rehab at $35/sq ft is roughly $52,500. Use this to screen deals, then refine with line items.
Add the big-ticket line items
- Kitchen — cabinets, counters, appliances: often $8,000–$25,000+.
- Bathrooms — $5,000–$15,000 each depending on scope.
- Roof — $8,000–$20,000 if replacement is needed.
- HVAC — $5,000–$12,000 for a new system.
- Electrical / plumbing — $5,000–$15,000+ if updating to code.
These items vary widely by market and finish level. Get itemized contractor bids before closing whenever possible — your estimate is a hypothesis until a pro confirms it.
Always pad for the unseen
Add a 10–15% contingency on top of your full estimate. Foundation issues, hidden water damage, outdated wiring, and surprise code requirements appear once demolition starts — the contingency is what keeps them from becoming losses.
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Get started freeFrequently asked questions
- How much does it cost to rehab a house for flipping?
- It ranges from about $15/sq ft for cosmetic work to $75+/sq ft for a full gut, plus big-ticket items like roof, HVAC, kitchen, and baths. A typical moderate flip rehab lands somewhere between $25,000 and $75,000.
- How do you estimate rehab costs as a beginner?
- Start with a per-square-foot baseline to screen the deal, then add line items for kitchen, baths, roof, and systems, and pad 10–15% for surprises. Confirm with itemized contractor bids before you close.
- What rehab surprises cost the most?
- Foundation problems, full roof replacement, outdated electrical or plumbing, and hidden water or mold damage. These are exactly why a contingency reserve and a thorough inspection are non-negotiable.