In this playbook
- How to build a line-item budget from inspection to finishes.
- Why every budget needs a contingency, and how big.
- How to price delays so you can manage them.
Playbook: a practical guide to one stage of a flip, with the tools to use along the way.
The rehab is where flips most often go wrong. Costs run over, contractors fall behind and every month adds interest and bills. A clear budget and schedule won't prevent every surprise, but they'll show you the cost of each one early.
Step 1: Inspect before you budget
Before you price finishes, find out what the house needs. A general inspection, plus specialists for the roof, sewer line or foundation when there's a concern, tells you about the expensive problems that sink budgets.
Step 2: Build the budget line by line
Start with the big items, the kitchen, bathrooms and any system replacements, then add finishes, the exterior and the paperwork. The Rehab Budget Builder lays it out by category and shows your cost per square foot, which you can compare with past jobs in the area. For a quick ballpark before you have bids, try Rehab Cost per Sq. Ft.
Match the finish level to what similar homes nearby sold with. Spending beyond that rarely comes back in the sale price.
Step 3: Add a contingency
Hidden water damage, old wiring and permit changes are common. Plan for them with a contingency: about 10% for cosmetic jobs and 15–20% for older homes or major work. If you never use it, it becomes profit.
Step 4: Get bids and set a schedule
Get at least two bids for major trades. Ask each contractor for a timeline, and tie payments to completed work rather than dates. If your lender funds the rehab through draws, match your contractor payment schedule to the draw schedule. The Draw Schedule Planner shows the interest on each draw and how much cash you'll need before the first one funds.
Step 5: Price the calendar
Every month you own the house costs money. The Holding Cost Timer shows your cost per month and per day. The typical U.S. flip took 161 days from purchase to resale in the second quarter of 2026, according to ATTOM. Knowing what a week of delay costs makes it easier to decide when to pay for speed.
Step 6: Track as you go
Update the budget each week with actual spending. If a category runs over, find savings elsewhere or draw from the contingency, and rerun the Deal Analyzer so you know where the deal stands.
Tools for this stage
- Rehab Budget Builder: a budget that holds up
- Rehab Cost per Sq. Ft.: a quick ballpark by scope
- Holding Cost Timer: what each month costs
- Draw Schedule Planner: interest and cash for each draw