Per-square-foot rules of thumb
The calculator's per-square-foot presets (cosmetic, moderate, heavy) are rough national starting points for screening deals. Labor and material costs vary widely by market, age of home and scope, so replace them with your own contractor numbers before you set a price.
- Cosmetic: paint, flooring, fixtures, landscaping, minor repairs.
- Moderate: cosmetic plus kitchen and bath updates, some systems.
- Heavy: full gut, roof, HVAC, electrical, plumbing, structural or layout changes.
Big-ticket items to check first
These are the items that blow up budgets — and the ones experienced buyers will price first when they walk the property:
- Roof age and condition
- Foundation and structural issues
- HVAC, water heater and plumbing (including sewer line)
- Electrical panel and wiring
- Windows, siding and drainage
- Permit requirements and code upgrades in your city
How lenders fund repairs
Fix-and-flip lenders usually fund the rehab budget through draws: the buyer pays for work, the lender inspects, then reimburses in stages. That means your buyer needs cash to carry the rehab between draws, even when the loan covers 100% of repairs. A realistic, itemized budget also makes the buyer's loan faster to approve.
Frequently asked questions
How much contingency should I add to a rehab budget?
10% is a common minimum. Use 15–20% for older homes, heavy rehabs, or when you haven't had a contractor walk the property.
How do wholesalers estimate repairs without a contractor?
Start with a per-square-foot estimate for the rehab level, then itemize the big-ticket items you can see: roof, HVAC, kitchen, baths, flooring and paint. Get a contractor walkthrough before you finalize the price for buyers.
Do repair costs change my MAO dollar for dollar?
At least dollar for dollar. Higher repairs also raise your buyer's loan, interest and holding costs, so the MAO usually drops by more than the added repair cost.