Rehab Cost Estimator
Know Your Rehab Costs Before You Make an Offer
AI-powered rehab cost estimation from property photos, condition descriptions, and local labor/material pricing databases.
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Rehab cost estimation is where fix-and-flip deals most commonly go wrong. An investor sees a property, makes a rough mental estimate of the renovation budget, backs into a purchase price, and then discovers three weeks into the project that the plumbing needs to be repiped, the electrical panel does not meet code, and the foundation has a crack that the home inspector missed. The project that was budgeted at $45,000 becomes $78,000, the flip goes six weeks over timeline, and the profit margin evaporates.
The Rehab Cost Estimator addresses this by forcing a systematic, line-item analysis of every major trade category before you make your offer. Rather than estimating rehab as a single lump sum, the tool breaks the project into 10 trade categories — roofing, plumbing, electrical, HVAC, flooring, paint/drywall, kitchen, bathrooms, foundation/structural, and landscaping/exterior — and generates a per-line cost estimate for each category based on the property's condition grade, type, size, and regional cost database.
The AI uses 85th-percentile regional labor and material costs — not market averages. The 85th percentile means that 85% of comparable projects in the region cost less than the estimated amount. This is a deliberate design choice: for underwriting purposes, it is far better to budget at the high end and come in under budget than to budget at the average and have 50% of your projects run over. The tool then adds a non-negotiable 15% contingency reserve on top of all trade costs, accounting for the unknown-unknowns that appear in virtually every significant rehab project.
For each trade category, the tool generates contractor notes — specific instructions about what scope of work is assumed, what decisions will require on-site verification, and what conditions would trigger a scope increase. Three material grade options are provided for discretionary categories (kitchen, bathrooms, flooring): Economy, Standard, and Premium — allowing you to model different rehab strategies and see how material choices affect both cost and the ARV estimate.
Input Parameters
Parameter | Type | Required | Description |
|---|---|---|---|
| String | Yes | Full property address |
| String | Yes |
|
| Integer | Yes | Total above-grade living area in square feet |
| Integer | Yes | Number of bedrooms |
| Float | Yes | Number of bathrooms (full + half) |
| Integer (1–5) | Yes | 1 = Like New, 2 = Good, 3 = Average, 4 = Below Average, 5 = Distressed/Gut |
| Integer | Yes | Year property was built (affects electrical, plumbing, HVAC baseline assumptions) |
| String | No |
|
| Integer | No | Estimated age of current roof in years; default |
| Integer | No | Estimated age of HVAC system; default |
| Boolean | No | If |
| String | Yes |
|
| String | Yes | State abbreviation or metro area; determines regional cost database |
| Float | No | Override default 15% contingency; minimum allowed: 10%; maximum: 25% |
| Boolean | No | Include per-trade scope assumptions and notes; default |
| String | Yes |
|
Processing Methodology
Step 1 — Condition Assessment. The AI maps the input condition grade (1–5) to a scope determination matrix that defines, for each trade category, the baseline scope of work:
Condition Grade | Description | Baseline Scope |
|---|---|---|
1 — Like New | Near-new condition, no deferred maintenance | Cosmetic touch-up only; minimal scope |
2 — Good | Minor deferred maintenance, functionally sound | Paint, flooring refresh, minor kitchen/bath updates |
3 — Average | Moderate wear, some systems aging | Full cosmetic, selective system replacements |
4 — Below Average | Significant deferred maintenance, aging systems | Full cosmetic + all major systems likely requiring replacement |
5 — Distressed/Gut | Substantial deterioration or damage | Full gut rehab; all systems assumed replacement |
Step 2 — Year-Built Adjustments. The year the property was built triggers automatic scope adjustments for systems that have characteristic lifespans:
Properties built before 1978: Lead paint testing and abatement scope added automatically
Properties built before 1985: Full electrical panel evaluation; knob-and-tube wiring risk flagged
Properties built before 1990: Cast iron / galvanized plumbing risk flagged; scope includes inspection + partial/full repipe
Properties with roof age > 20 years: Full roof replacement added to scope regardless of condition grade
Properties with HVAC age > 15 years: HVAC system replacement added to scope
Step 3 — Per-Trade Cost Calculation. For each of the 10 trade categories, the AI calculates:
```
Trade Cost = (Unit Quantity) × (85th Percentile Regional Unit Cost) × (Condition Multiplier)
```
Trade categories and their primary quantity drivers:
Trade Category | Primary Cost Driver | Secondary Drivers |
|---|---|---|
Roofing | Roof square footage | Pitch, layers, material type |
Plumbing | Fixture count + linear footage | Year built, pipe material |
Electrical | Panel amps + fixture count | Year built, service type |
HVAC | Tonnage (based on sqft) | Age, fuel type, ductwork condition |
Flooring | GLA square footage | Room types, subfloor condition |
Paint & Drywall | GLA square footage | Ceiling height, repair scope |
Kitchen | Linear cabinet footage | Material grade, appliance inclusion |
Bathrooms | Per-bathroom count | Material grade, fixture type |
Foundation/Structural | Condition + foundation type | Known issues, soil type |
Landscaping/Exterior | Lot size + facade condition | Fence, driveway, curb appeal scope |
Step 4 — Material Grade Scenarios. For Kitchen, Bathrooms, and Flooring categories, three pricing scenarios are generated:
Grade | Description | Cost Basis |
|---|---|---|
Economy | Builder-grade materials, functional upgrades | 65th percentile regional costs |
Standard | Mid-grade materials, market-appropriate finishes | 85th percentile regional costs (default) |
Premium | High-end finishes, designed to maximize ARV | 95th percentile regional costs |
Step 5 — Contingency Addition.
```
Subtotal = Sum of all trade costs
Contingency = Subtotal × 0.15 (default; minimum 10%, maximum 25%)
Grand Total = Subtotal + Contingency
```
Output Format
Summary Header:
```
Rehab Cost Estimate — Scope of Work
Property: 1847 W Elm St, Tempe AZ 85281
Condition Grade: 4 (Below Average) | SFR | 1,420 sqft | 3bd/2ba | Built: 1987
Material Grade: Standard
Region: Phoenix-Mesa-Scottsdale MSA
Estimate Date: [Date]
```
Line-Item Budget Table (Standard Grade):
Trade Category | Scope Assumed | Quantity | Unit | Unit Cost | Total |
|---|---|---|---|---|---|
Roofing | Full tear-off + re-roof, 30yr architectural shingle | 1,580 | sqft | $6.80 | $10,744 |
Plumbing | Partial repipe (galvanized to PEX), fixture replacements | Lump | — | — | $8,200 |
Electrical | Panel upgrade 200A, fixture/outlet replacements | Lump | — | — | $6,800 |
HVAC | Full system replacement (3-ton split, 15 SEER) | 1 | system | $7,400 | $7,400 |
Flooring | LVP throughout main areas, carpet in bedrooms | 1,420 | sqft | $5.20 | $7,384 |
Paint & Drywall | Full interior repaint, patch and repair | 1,420 | sqft | $3.10 | $4,402 |
Kitchen | New cabinets, countertop (quartz), appliances, sink | 1 | full kit | — | $14,800 |
Bathrooms (×2) | Full remodel each: tile, vanity, toilet, fixtures | 2 | baths | $6,200 | $12,400 |
Foundation/Structural | Crack monitoring, minor patching (no major repair) | Lump | — | — | $1,200 |
Landscaping/Exterior | Sod replacement, paint exterior, new front door | Lump | — | — | $4,800 |
Subtotal | $77,930 | ||||
Contingency (15%) | $11,690 | ||||
GRAND TOTAL | $89,620 |
Contractor Notes (Sample):
Plumbing: This estimate assumes partial repipe of galvanized lines in walls and attic only. If under-slab galvanized lines are discovered during demo, full repipe cost could increase by $4,000–$8,000. Recommend slab leak test before finalizing budget.
Foundation: Estimate assumes surface cracks only. If cracks are diagonal or wider than 1/4 inch, structural engineering evaluation required. Potential additional cost: $3,000–$25,000+ depending on repair scope.
Material Grade Comparison:
Trade | Economy | Standard | Premium |
|---|---|---|---|
Flooring | $4,970 | $7,384 | $10,940 |
Kitchen | $9,200 | $14,800 | $24,500 |
Bathrooms (×2) | $7,600 | $12,400 | $21,000 |
Total (these 3 trades) | $21,770 | $34,584 | $56,440 |
Total Estimate (with contingency) | $72,408 | $89,620 | $115,194 |
Conservative Bias Methodology
85th Percentile Pricing. All trade costs use the 85th percentile of regional contractor quotes, not the market average or median. This means the estimate is set at a cost level that only 15% of projects exceed. Combined with the 15% contingency, the tool is designed to produce estimates that most projects will come in under rather than over.
15% Contingency (Non-Negotiable Default). The 15% contingency is non-negotiable at the default setting and reflects the industry reality that rehab projects almost always encounter unexpected costs — hidden water damage, plumbing issues discovered during demo, permit requirements not anticipated during planning, code compliance upgrades required by building departments. The minimum allowed contingency override is 10%, and the tool provides a warning when the user overrides below 15%.
Year-Built Automatic Scope Additions. Rather than requiring the user to remember all the age-related risk factors (lead paint in pre-1978 homes, old wiring in pre-1985 homes, galvanized plumbing in pre-1990 homes), the AI adds these automatically based on the year built. This prevents the common error of forgetting to budget for these items until they are discovered mid-project.
Unknown = Worst Case. When inputs like roof age, HVAC age, or foundation type are listed as "Unknown," the AI defaults to the more expensive scenario rather than the cheaper one. Unknown roof age is treated as needing replacement. Unknown HVAC age is treated as needing replacement. This is the correct approach for underwriting purposes.
CRM Integration
Attaches full scope-of-work report as file to Property record in CRM
Populates custom field:
RehabBudgetEstimate,RehabGrade,RehabDateFeeds rehab cost directly into Deal Margin & ROI Scenario Modeler if pipeline integration is active
Generates contractor task list in CRM (optional): creates individual task records per trade category for contractor bid tracking
Parameter | Type | Required | Description |
|---|---|---|---|
| String | Yes | Full property address |
| String | Yes |
|
| Integer | Yes | Total above-grade living area in square feet |
| Integer | Yes | Number of bedrooms |
| Float | Yes | Number of bathrooms (full + half) |
| Integer (1–5) | Yes | 1 = Like New, 2 = Good, 3 = Average, 4 = Below Average, 5 = Distressed/Gut |
| Integer | Yes | Year property was built (affects electrical, plumbing, HVAC baseline assumptions) |
| String | No |
|
| Integer | No | Estimated age of current roof in years; default |
| Integer | No | Estimated age of HVAC system; default |
| Boolean | No | If |
| String | Yes |
|
| String | Yes | State abbreviation or metro area; determines regional cost database |
| Float | No | Override default 15% contingency; minimum allowed: 10%; maximum: 25% |
| Boolean | No | Include per-trade scope assumptions and notes; default |
| String | Yes |
|
Parameter | Type | Required | Description |
|---|---|---|---|
| String | Yes | Full property address |
| String | Yes |
|
| Integer | Yes | Total above-grade living area in square feet |
| Integer | Yes | Number of bedrooms |
| Float | Yes | Number of bathrooms (full + half) |
| Integer (1–5) | Yes | 1 = Like New, 2 = Good, 3 = Average, 4 = Below Average, 5 = Distressed/Gut |
| Integer | Yes | Year property was built (affects electrical, plumbing, HVAC baseline assumptions) |
| String | No |
|
| Integer | No | Estimated age of current roof in years; default |
| Integer | No | Estimated age of HVAC system; default |
| Boolean | No | If |
| String | Yes |
|
| String | Yes | State abbreviation or metro area; determines regional cost database |
| Float | No | Override default 15% contingency; minimum allowed: 10%; maximum: 25% |
| Boolean | No | Include per-trade scope assumptions and notes; default |
| String | Yes |
|
Processing Methodology
Step 1 — Condition Assessment. The AI maps the input condition grade (1–5) to a scope determination matrix that defines, for each trade category, the baseline scope of work:
Condition Grade | Description | Baseline Scope |
|---|---|---|
1 — Like New | Near-new condition, no deferred maintenance | Cosmetic touch-up only; minimal scope |
2 — Good | Minor deferred maintenance, functionally sound | Paint, flooring refresh, minor kitchen/bath updates |
3 — Average | Moderate wear, some systems aging | Full cosmetic, selective system replacements |
4 — Below Average | Significant deferred maintenance, aging systems | Full cosmetic + all major systems likely requiring replacement |
5 — Distressed/Gut | Substantial deterioration or damage | Full gut rehab; all systems assumed replacement |
Step 2 — Year-Built Adjustments. The year the property was built triggers automatic scope adjustments for systems that have characteristic lifespans:
Properties built before 1978: Lead paint testing and abatement scope added automatically
Properties built before 1985: Full electrical panel evaluation; knob-and-tube wiring risk flagged
Properties built before 1990: Cast iron / galvanized plumbing risk flagged; scope includes inspection + partial/full repipe
Properties with roof age > 20 years: Full roof replacement added to scope regardless of condition grade
Properties with HVAC age > 15 years: HVAC system replacement added to scope
Step 3 — Per-Trade Cost Calculation. For each of the 10 trade categories, the AI calculates:
```
Trade Cost = (Unit Quantity) × (85th Percentile Regional Unit Cost) × (Condition Multiplier)
```
Trade categories and their primary quantity drivers:
Trade Category | Primary Cost Driver | Secondary Drivers |
|---|---|---|
Roofing | Roof square footage | Pitch, layers, material type |
Plumbing | Fixture count + linear footage | Year built, pipe material |
Electrical | Panel amps + fixture count | Year built, service type |
HVAC | Tonnage (based on sqft) | Age, fuel type, ductwork condition |
Flooring | GLA square footage | Room types, subfloor condition |
Paint & Drywall | GLA square footage | Ceiling height, repair scope |
Kitchen | Linear cabinet footage | Material grade, appliance inclusion |
Bathrooms | Per-bathroom count | Material grade, fixture type |
Foundation/Structural | Condition + foundation type | Known issues, soil type |
Landscaping/Exterior | Lot size + facade condition | Fence, driveway, curb appeal scope |
Step 4 — Material Grade Scenarios. For Kitchen, Bathrooms, and Flooring categories, three pricing scenarios are generated:
Grade | Description | Cost Basis |
|---|---|---|
Economy | Builder-grade materials, functional upgrades | 65th percentile regional costs |
Standard | Mid-grade materials, market-appropriate finishes | 85th percentile regional costs (default) |
Premium | High-end finishes, designed to maximize ARV | 95th percentile regional costs |
Step 5 — Contingency Addition.
```
Subtotal = Sum of all trade costs
Contingency = Subtotal × 0.15 (default; minimum 10%, maximum 25%)
Grand Total = Subtotal + Contingency
```
Output Format
Summary Header:
```
Rehab Cost Estimate — Scope of Work
Property: 1847 W Elm St, Tempe AZ 85281
Condition Grade: 4 (Below Average) | SFR | 1,420 sqft | 3bd/2ba | Built: 1987
Material Grade: Standard
Region: Phoenix-Mesa-Scottsdale MSA
Estimate Date: [Date]
```
Line-Item Budget Table (Standard Grade):
Trade Category | Scope Assumed | Quantity | Unit | Unit Cost | Total |
|---|---|---|---|---|---|
Roofing | Full tear-off + re-roof, 30yr architectural shingle | 1,580 | sqft | $6.80 | $10,744 |
Plumbing | Partial repipe (galvanized to PEX), fixture replacements | Lump | — | — | $8,200 |
Electrical | Panel upgrade 200A, fixture/outlet replacements | Lump | — | — | $6,800 |
HVAC | Full system replacement (3-ton split, 15 SEER) | 1 | system | $7,400 | $7,400 |
Flooring | LVP throughout main areas, carpet in bedrooms | 1,420 | sqft | $5.20 | $7,384 |
Paint & Drywall | Full interior repaint, patch and repair | 1,420 | sqft | $3.10 | $4,402 |
Kitchen | New cabinets, countertop (quartz), appliances, sink | 1 | full kit | — | $14,800 |
Bathrooms (×2) | Full remodel each: tile, vanity, toilet, fixtures | 2 | baths | $6,200 | $12,400 |
Foundation/Structural | Crack monitoring, minor patching (no major repair) | Lump | — | — | $1,200 |
Landscaping/Exterior | Sod replacement, paint exterior, new front door | Lump | — | — | $4,800 |
Subtotal | $77,930 | ||||
Contingency (15%) | $11,690 | ||||
GRAND TOTAL | $89,620 |
Contractor Notes (Sample):
Plumbing: This estimate assumes partial repipe of galvanized lines in walls and attic only. If under-slab galvanized lines are discovered during demo, full repipe cost could increase by $4,000–$8,000. Recommend slab leak test before finalizing budget.
Foundation: Estimate assumes surface cracks only. If cracks are diagonal or wider than 1/4 inch, structural engineering evaluation required. Potential additional cost: $3,000–$25,000+ depending on repair scope.
Material Grade Comparison:
Trade | Economy | Standard | Premium |
|---|---|---|---|
Flooring | $4,970 | $7,384 | $10,940 |
Kitchen | $9,200 | $14,800 | $24,500 |
Bathrooms (×2) | $7,600 | $12,400 | $21,000 |
Total (these 3 trades) | $21,770 | $34,584 | $56,440 |
Total Estimate (with contingency) | $72,408 | $89,620 | $115,194 |
Conservative Bias Methodology
85th Percentile Pricing. All trade costs use the 85th percentile of regional contractor quotes, not the market average or median. This means the estimate is set at a cost level that only 15% of projects exceed. Combined with the 15% contingency, the tool is designed to produce estimates that most projects will come in under rather than over.
15% Contingency (Non-Negotiable Default). The 15% contingency is non-negotiable at the default setting and reflects the industry reality that rehab projects almost always encounter unexpected costs — hidden water damage, plumbing issues discovered during demo, permit requirements not anticipated during planning, code compliance upgrades required by building departments. The minimum allowed contingency override is 10%, and the tool provides a warning when the user overrides below 15%.
Year-Built Automatic Scope Additions. Rather than requiring the user to remember all the age-related risk factors (lead paint in pre-1978 homes, old wiring in pre-1985 homes, galvanized plumbing in pre-1990 homes), the AI adds these automatically based on the year built. This prevents the common error of forgetting to budget for these items until they are discovered mid-project.
Unknown = Worst Case. When inputs like roof age, HVAC age, or foundation type are listed as "Unknown," the AI defaults to the more expensive scenario rather than the cheaper one. Unknown roof age is treated as needing replacement. Unknown HVAC age is treated as needing replacement. This is the correct approach for underwriting purposes.
CRM Integration
Attaches full scope-of-work report as file to Property record in CRM
Populates custom field:
RehabBudgetEstimate,RehabGrade,RehabDateFeeds rehab cost directly into Deal Margin & ROI Scenario Modeler if pipeline integration is active
Generates contractor task list in CRM (optional): creates individual task records per trade category for contractor bid tracking
Attaches full scope-of-work report as file to Property record in CRM
Populates custom field:
RehabBudgetEstimate,RehabGrade,RehabDateFeeds rehab cost directly into Deal Margin & ROI Scenario Modeler if pipeline integration is active
Generates contractor task list in CRM (optional): creates individual task records per trade category for contractor bid tracking
Protect your margins before you make an offer. A detailed rehab estimate before the offer means you are not discovering scope items after you are under contract and have sunk time and money into due diligence.
Win contractor negotiations. Walking into a contractor bid meeting with a detailed, line-item scope of work puts you in control of the conversation. You know what you are asking for and what it should cost.
Model scenarios with confidence. Three material grade options allow you to instantly understand the cost-to-ARV tradeoff of going Economy vs. Standard vs. Premium on the discretionary trades.
Consistent underwriting across your team. Everyone runs the same tool, uses the same methodology, and produces budgets that can be compared across deals.
Who This Is For
Fix-and-flip investors building rehab budgets before making offers
Wholesalers who need to communicate rehab costs to their buyer list
Hard money lenders reviewing rehab loan applications
Property managers estimating capital improvement costs for rental acquisitions