How to Estimate Rehab Costs (Before You Make an Offer)
You usually have to make an offer before a contractor can bid the job. A quick, honest rehab estimate protects you from overpaying.
Start with price per square foot
Investors often start with rough ranges per square foot of living area, then adjust after a walkthrough:
- Cosmetic (about $15/sq ft): paint, carpet, fixtures, deep cleaning.
- Moderate (about $25/sq ft): cosmetic work plus flooring throughout and kitchen and bathroom updates.
- Heavy (about $50/sq ft and up): roof, HVAC, plumbing, electrical, layout changes.
These rates are only a guide. Costs change with the area, the finish level, and whether the home will be a rental, a short-term rental or a retail flip.
Check the big-ticket items
Most budget overruns come from systems, not finishes. On every walkthrough, check:
- Foundation: doors that stick, cracks in brick or drywall, uneven floors. Foundation repairs are common in Houston's clay soils.
- Roof: age, missing shingles, ceiling stains.
- HVAC: age of the system and condenser.
- Plumbing: older homes may have cast-iron drains or galvanized supply lines.
- Electrical: panel brand and capacity, old wiring.
Add a contingency
Add 10–15% to your total for surprises found after the walls are opened, and more for older homes.