How to Estimate Rehab Costs Without Getting Burned

Fix and Flip

The short version, then the substance.

Walk it in systems, not rooms. Roof, foundation, HVAC, electrical, plumbing, then cosmetics. The first five decide whether the budget is $30,000 or $80,000. Cosmetics are predictable. Systems are where estimates die, so inspect them first and hardest.

Use unit pricing and a contingency. Price per square foot for flooring and paint, per opening for windows and doors, per fixture for plumbing. Then add 10 to 15% contingency on top, more on older stock. The contingency is not pessimism, it is the cost of walls you have not opened yet.

Get real bids before you close. A contractor walk-through before closing converts your estimate into commitments. Lenders fund confident budgets. A scope of work with named prices closes faster and draws faster than a hopeful number on a napkin.

The South Texas angle. Averlend underwrites this every week in Corpus Christi and across Nueces County. If you are working a deal in downtown or anywhere else in the metro, the theory above comes with a local desk attached: see our Corpus Christi lending page or send the deal directly.