CalculateRealEstateROI

BRRRR & Flip · 12 min read

How to Build a Real Rehab Budget

A line-item approach to estimating renovation costs without getting burned.

The Trade-Level Approach

Break the rehab into trades: roof, HVAC, plumbing, electrical, kitchens, baths, flooring, paint, exterior. Get bids per trade. Avoid 'whole-house' GC numbers — they hide markup.

The 20% Contingency Rule

Add 20% to every estimate. For pre-1978 properties, add another 5% for lead remediation. For pre-1960 properties, plan for at least one major-systems surprise.

Tracking Actuals

Every project teaches you your personal multiplier on contractor estimates. Most novice investors run 30–50% over budget for their first 2–3 projects, then stabilize.