Repair
Estimation

Rehab tiers by scope

Professional flippers categorize rehabs into tiers with rough per-square-foot budgets. These benchmarks apply to typical Midwest/South markets; adjust upward 25–50% for Northeast / West Coast.

• Cosmetic (light lipstick) — $10–20/sq ft. Paint, flooring refresh, light fixtures, minor cabinet work, curb appeal. Typical total: $15,000–$30,000 on a 1,500 sq ft home.
• Moderate (full cosmetic) — $25–45/sq ft. New flooring throughout, kitchen refresh (cabinets painted, new counters, appliances), bathroom modernization, paint, some fixtures, minor systems work. Typical total: $35,000–$65,000 on a 1,500 sq ft home.
• Heavy (major renovation) — $50–85/sq ft. New kitchen with cabinets, new bath suites, possible layout changes, systems repairs, roof, HVAC. Typical total: $75,000–$130,000 on a 1,500 sq ft home.
• Full gut — $100–150+/sq ft. Studs-out renovation, complete systems replacement, possible additions or layout changes. Typical total: $150,000–$225,000+ on a 1,500 sq ft home.

Line-item major system costs

Benchmark costs for common major systems (typical markets, moderate quality):

• Roof replacement — $8,000–$15,000 typical shingle; $20,000–$40,000 slate/metal/specialty
• HVAC — $5,000–$8,000 gas/electric combo; $10,000–$15,000 heat pump; $12,000–$18,000 high-efficiency dual-zone
• Water heater — $1,200–$2,500 standard; $2,500–$4,500 tankless
• Electrical panel — $2,000–$4,000 200-amp service upgrade
• Full rewire — $8,000–$15,000 for 1,500 sq ft home
• Plumbing repipe — $5,000–$15,000 copper or PEX; higher for complex
• Sewer line — $5,000–$25,000 depending on length and method
• Windows — $400–$800 each installed, $600–$1,200 on larger or high-end
• Kitchen — $15,000–$35,000 mid-range; $40,000–$80,000 high-end
• Bathroom — $8,000–$20,000 full remodel; $3,000–$8,000 refresh
• Foundation — $5,000 minor crack repair to $30,000+ for major settlement
• Flooring — $4–7/sq ft LVP; $8–15/sq ft hardwood; $3–6/sq ft carpet
• Paint (interior) — $3–5/sq ft including materials
• Exterior paint — $2,500–$8,000 depending on size and prep
• Deck — $25–45/sq ft PT; $45–80/sq ft composite
• Concrete driveway — $8–15/sq ft

Regional variation

• Midwest / South (Ohio, Georgia, Texas secondary): baseline
• Florida, Texas primary metros: +10–15%
• Mid-Atlantic / Mountain West: +15–25%
• Northeast metros (NYC, Boston, DC): +40–60%
• California (LA, SF, Seattle): +50–100%
• Hawaii: +100%

Contractor bid process

Professional practice:

1. Write a detailed scope of work (SOW) before bidding — describes every task, material quality, and room
2. Get minimum 3 bids on identical SOW
3. Verify license at state contractor board; verify active insurance and workers’ comp
4. Call 3 references per contractor; visit completed project if possible
5. Compare bids line-by-line — red flag bids are the unusually low ones
6. Negotiate payment schedule tied to milestones (no more than 10–20% upfront)
7. Require lien waiver with each payment

Contingency budget

Contingency reserve of 15–20% of rehab budget is standard for professional flippers. 25%+ for heavy rehab or properties that can’t be fully inspected. Contingency covers: hidden damage discovered at demo, permit requirements not anticipated, subcontractor no-shows, material cost increases, scope creep, delays adding carrying cost.

Permit and inspection realities

• Permit timelines — 2–8 weeks typical for plan review; emergency residential often 1–2 weeks
• Permit costs — 0.5–2% of project value in most jurisdictions; higher in CA
• Inspection scheduling — 3–7 days notice typical; failed inspections require re-inspection fees and 2–7 day redo cycles
• Final Certificate of Occupancy — required for legal habitation; delayed CoO delays the sale close

Common pitfalls

• Lowball contractor bids. Contractors bid 20–30% under actual cost to win the job, then hit you with change orders. Three bids and reference calls mitigate.
• Hidden water damage. Peeling paint near windows = window leak = rot under drywall = $5K–$20K extra. Budget.
• Foundation settlement. Sloping floors, cracked bricks, doors not closing — foundation issues hidden behind cosmetic rehabilitation. Get a structural engineer ($400–$800) on anything questionable.
• Knob-and-tube wiring. Pre-1950 homes often have active K&T wiring; rewire required for insurance in most areas. $8K–$15K add.
• Lead paint and asbestos. Pre-1978 homes require lead-safe work practices (RRP rule). Asbestos abatement on flooring/insulation $1K–$15K.
• Scope creep. “While we’re at it” decisions during rehab add 10–30% unplanned cost. Define scope, stick to it.
• Permit surprise. Unpermitted prior work discovered during renovation — the municipality requires bringing up to code. Unexpected $5K–$25K.
• Materials shortage. Appliance back-order, cabinet lead time, window production — pandemic-era supply issues persist in specialty items.