Why an estimator at all?
You can't underwrite a flip or BRRRR without a rehab number. You also can't get a real contractor bid on every property you're considering. The fix is a sq-ft-based estimator: directional enough to filter the universe of potential deals down to the 10% worth a real bid.
This tool ships with 2024-25 mid-market defaults for every common rehab work item. Pick the scope, the calculator does the math, you get a number in seconds. Then add a contingency percentage (10-20% is standard) and you have a defensible budget.
How to use the estimator
- Set the sqft and bath count. Defaults to the property values if available; you can override.
- Click “Pick work items” to expand the catalog and select what the property needs.
- Adjust the contingency percentage. 10% for light cosmetic, 15-20% for anything touching systems or structure.
- Use the total as your underwriting input. When you run the full BRRRR or Fix-and-Flip in TrueCap, the rehab estimator's total flows in as the default.
Cost categories explained
Cosmetic ($3-15/sqft)
The cheap stuff that makes a rental show well: interior paint, new flooring (LVP is the rental standard), updated light fixtures and hardware, basic landscaping. Most rentals only need cosmetic work between tenants.
Kitchen ($5k refresh → $40k+ full reno)
The single biggest single-room cost driver. Three tiers: refresh (paint cabinets, hardware, faucet), mid-grade (IKEA cabinets, quartz, new appliances), or custom. Investors should almost never do custom kitchens in a rental.
Bath ($3k refresh → $16k full reno per bath)
Costs multiply by bath count. A house with 2 baths and a full bath reno is $30-40k. The tool multiplies bath items by bath count automatically.
Systems ($1.5k-12k per item)
Roof, HVAC, water heater, electrical panel, plumbing. These are the items that turn a deal from “cosmetic flip” into “heavy rehab.” They're also where inspection-discovered surprises live.
Structural ($8k-12k typical)
New windows, exterior repair, foundation work. Sometimes uncovered after demo; budget contingency to absorb at least one structural surprise.
Common rehab budgeting mistakes
1. Skipping contingency
Every rehab has at least one surprise. Plumbing was wrong, the floor needed replacement instead of refinishing, the contractor found rot. Without 10-20% contingency, that one surprise eats your margin.
2. Ignoring soft costs
Permits, dumpster rentals, temporary power, project management fees, lockbox + key copies — soft costs add up to 5-10% on top of the materials and labor estimate. The defaults in this tool roll those in.
3. Underestimating bath multiplication
A 3-bath house with a $9.5k mid-grade bath reno per bath is $28.5k just on bathrooms. Investors often anchor on “one bath” cost and forget to multiply.
4. Confusing “estimate” with “bid”
This estimator is for underwriting and triage. Before committing, get three written bids from licensed contractors. Real bids vary 30-50% from this estimator depending on the market and the contractor.
Frequently asked questions
How accurate is a sq-ft-based rehab estimate?+
Directional, not bid-quality. The defaults in this tool are mid-market 2024-25 contractor pricing surveys. Real bids vary 30-50% based on local labor rates, material availability, scope clarity, and contractor markup. Use this estimator to triage deals; get three real bids before committing.
What contingency should I budget?+
10% on a cosmetic rehab, 15-20% on anything that touches structure, electrical, or plumbing. The bigger the project, the more surprises hide behind walls. Investors who skip contingency consistently blow budgets.
Should I include holding costs in the rehab budget?+
Treat them separately. Rehab cost = labor + materials + permits + dumpster + supervision. Holding costs (mortgage interest, taxes, insurance, utilities while no rent is coming in) are a separate line item. The TrueCap BRRRR and Fix-and-Flip calculators handle both — the rehab cost from this tool flows into the rehab input, holding costs get computed separately from your financing assumptions.
How do I estimate a kitchen renovation?+
Three tiers: (1) refresh — paint cabinets, new hardware, new faucet, $4-7k. (2) Mid-grade — IKEA cabinets, butcher block or quartz tops, new appliances, ~$22-30k. (3) Full custom — custom cabinets, premium countertops, professional installation, $40k+. Most rental flips and BRRRRs land in tier 2.
What's a typical full-gut rehab cost?+
$80-150 per square foot in most US markets, $200-400 in high-cost coastal cities. Full gut = strip to studs, all-new systems (electrical, plumbing, HVAC), new windows, full finish. A 1,500 sqft full gut runs $120-225k mid-market, $300-600k in HCOL cities.
Should I get one big bid or itemize?+
Itemize when you can. A lump-sum bid lets the contractor pad. An itemized bid forces transparency on which line items are real costs vs. markup. For BRRRR investors, itemized bids also make change orders less expensive when the inevitable surprises appear.