How the budget is built
Budget = Sum of line items + Contingency
Price each part of the job separately. Square-foot items like flooring and paint scale with the house; kitchens and bathrooms are priced per room. Big systems like the roof and HVAC are often all-or-nothing.
Example
A 1,500 sq ft house needs a $15,000 kitchen, two $8,000 bathrooms, new flooring at $5 per sq ft, paint and $5,000 of other repairs. With a 10% contingency the budget is about $51,000, or $34 per square foot.
Always carry a contingency
Old wiring, rot and plumbing surprises are common. 10% is a minimum; 15–20% is wiser on older homes. Get contractor bids before you finalize the budget.
Common questions
What does a typical rehab cost per sq ft?
Cosmetic updates often run $15–$30 per sq ft and full gut renovations $60 or more, depending on your market and finishes.
Should I include permits?
Yes, add permits and dumpsters under other repairs.