How to Estimate Rehab Costs for a House Flip

The difference between a profitable flip and a money pit often comes down to accurate rehab estimates. Here's how to calculate costs like a seasoned investor.

The 3 Levels of Rehab

Level 1: Cosmetic ($15-25/sq ft)

• Paint interior and exterior
• New flooring (LVP or carpet)
• Update light fixtures
• Minor landscaping
• Clean and stage

Timeline: 2-4 weeks

Level 2: Medium Rehab ($25-50/sq ft)

Everything in Level 1 plus:

• Kitchen refresh (cabinets, counters, appliances)
• Bathroom updates
• New doors and hardware
• HVAC service
• Roof repairs

Timeline: 6-10 weeks

Level 3: Full Renovation ($50-100+/sq ft)

Everything above plus:

• Kitchen gut and redesign
• Bathroom gut and redesign
• Electrical panel upgrade
• Plumbing replacement
• Foundation work
• Room additions or layout changes

Timeline: 3-6 months

Sacramento-Specific Costs (2026)

Item	Cost Range
Interior Paint	$2-4/sq ft
LVP Flooring	$5-8/sq ft installed
Kitchen Remodel	$15,000-40,000
Bathroom Remodel	$8,000-20,000
HVAC Replacement	$8,000-15,000
Roof (comp shingle)	$10,000-20,000
Electrical Panel	$2,000-4,000
Foundation Repair	$5,000-25,000+

The Estimating Process

Step 1: Walk the Property

Create a room-by-room checklist:

• Walls/ceilings (paint, texture, drywall repair)
• Flooring (replace or refinish)
• Windows and doors
• Electrical (outlets, switches, fixtures)
• Plumbing (fixtures, pipes visible)

Step 2: Check the "Big Ticket" Items

• Roof condition and age
• HVAC age and function
• Water heater age
• Foundation cracks or settlement
• Electrical panel amperage

Step 3: Get Contractor Bids

For anything beyond cosmetic, get 2-3 bids from licensed contractors. Compare scope, not just price.

Step 4: Add a Contingency

Always add 15-20% for surprises. Old houses have hidden problems. Permit costs add up. Material prices fluctuate.

Red Flags That Blow Budgets

• Water stains on ceilings (roof leak or plumbing)
• Musty smell (mold behind walls)
• Uneven floors (foundation issues)
• Old electrical (knob and tube, Federal Pacific panels)
• Galvanized plumbing (needs full replacement)
• Unpermitted additions (may need to be brought to code)

The Golden Rule

If you can't accurately estimate the rehab, don't buy the property. It's better to pass on a deal than to lose money on a budget blowout.