How to Estimate Renovation Costs Without a Contractor
One of the most common hurdles for new fix and flip investors is figuring out the cost of renovations - especially before a contractor is available.
But when deals move fast, you can’t always wait. The ability to estimate rehab costs on your own is a valuable skill that gives you a competitive edge.
In this post, we’ll break down practical strategies to help you estimate renovation costs with confidence - and how a lender like Barnett REI Finance can support you even when your numbers aren’t 100% locked in.
Why You Need This Skill
Speed: You’ll be able to analyze more deals, faster.
Negotiation power: You’ll know what to offer, and where to ask for seller credits
Confidence with lenders: Investors who understand project scope and costs get funded faster.
Step-by-Step Guide to Estimating Rehab Costs
Use a Cost-Per-Square-Foot Baseline
A quick rule of thumb:
Light cosmetic: $15 - $25 per sq. ft.
Moderate rehab: $25 - $45 per sq. ft.
Full gut/major upgrades: $ 50 - $100+ per sq. ft.
Adjust for your local market - costs in Dallas won’t match Detroit
2. Break it down by Category
Create a checklist of key components:
Interior
Paint: $2-$3 per sq. ft.
Flooring: $5-$10 per sq. ft. (varies by material)
Kitchen remodel: $10k-$30k
Bath remodel: $5k-$15k
Exterior
Roof: $5K–$15K
Siding/Paint: $3K–$10K
Landscaping: $1K–$5K
Systems:
HVAC: $5K–$10K
Electrical/plumbing: $2K–$8K+
Having this list in your phone or printed binder helps during walk-throughs
3. Use Online Estimators
Tools like:
Home advisor
Craftsman Book Cost Estimator
Flipster or DealCheck
These tools allow you to plug in ZIP codes and scope for regional estimates.
4. Factor in Contingencies
Always budget:
10-20% for surprises
Permit costs
Holding costs during renovation
Even if you’re doing a light cosmetic flip, these extras can add up fast
Pro Tip: Use Templates from Your Lender
At Barnett REI Finance, we’ve worked with thousands of investors. We offer:
Sample budget templates for common project types
Rehab calculators to help you reverse-engineer your loan
Insight into whether your budget fits our funding model
Need help? Our team is happy to review your project scope before you commit.
Final Thoughts: You don’t have to Be a Contractor - Just consistent
Estimating costs is about being consistent, not perfect. The more deals you walk, the better you’ll get. Use each flip as a learning opportunity - and surround yourself with resources to help you scale.