The Real Cost of Rehabbing: What Flippers Actually Spend in Texas Markets
Underestimating rehab costs kills deals. Learn the real per-square-foot costs, hidden expenses, and Texas-specific considerations that determine whether your flip makes money or loses it.
The Real Cost of Rehabbing: What Flippers Actually Spend in Texas Markets
Rehab cost estimates make or break flip deals.
Underestimate by 20%, and your $30K profit becomes a $10K loss.
Overestimate, and you walk away from deals that would've made you $50K.
Here's what flippers actually spend in Texas markets—and how to estimate accurately.
The Three Levels of Rehab
Not all rehabs are created equal. Understanding the difference is critical.
Level 1: Cosmetic Rehab
What it is: Paint, flooring, fixtures, landscaping—no major systems
For homes in good shape that only require cosmetic repairs, such as painting, minor drywall fixes, and updating fixtures, the cost can be about $10 per square foot
Typical scope:
- Interior/exterior paint
- Flooring replacement
- Light fixtures and hardware
- Landscaping and curb appeal
- Minor drywall repair
- Appliances
Texas cost: $10-$20 per square foot
Example: 1,500 sq ft house = $15,000-$30,000
Timeline: 2-4 weeks
Level 2: Moderate Rehab
What it is: Cosmetic upgrades PLUS kitchen/bath remodels, some mechanicals
If the home is generally in good condition but outdated, requiring more significant updates like new flooring, modernized kitchens and bathrooms, and moderate repairs, rehab costs can jump to around $30 per square foot
Typical scope:
- Everything in Level 1
- Kitchen cabinets/counters
- Bathroom vanities/tile
- HVAC repair or replacement
- Electrical panel upgrade
- Plumbing repairs
- Roof repair (not full replacement)
Texas cost: $25-$40 per square foot
Example: 1,500 sq ft house = $37,500-$60,000
Timeline: 6-10 weeks
Level 3: Heavy Rehab (Gut Renovation)
What it is: Major systems, structural work, full kitchen/bath remodels
For houses in horrible shape that need extensive repairs, including structural work, electrical and plumbing upgrades, and major renovations, the cost to rehab can reach approximately $60 per square foot
Typical scope:
- Full gut to studs
- New electrical system
- New plumbing system
- HVAC replacement
- Roof replacement
- Foundation repair
- Structural modifications
- Complete kitchen/bath builds
Texas cost: $50-$80 per square foot
Example: 1,500 sq ft house = $75,000-$120,000
Timeline: 3-6 months
Texas-Specific Rehab Considerations
Rehab costs vary by state. Here's what makes Texas unique:
1. Foundation Issues (The Texas Tax)
Problem: Expansive clay soil causes foundation movement
Cost: $3,000-$15,000 (pier and beam repair) to $20,000-$50,000+ (severe structural)
Markets most affected:
- DFW (especially older homes)
- Houston (soil and flooding)
- San Antonio (Hill Country limestone)
Red flags:
- Cracks wider than 1/4 inch
- Doors/windows that stick
- Uneven floors
- Separation between walls and ceiling
Always budget $5,000-$10,000 contingency for foundation in Texas homes built before 1990.
2. HVAC Replacement
Reality: Texas summers are brutal. HVAC systems work harder and die faster.
Lifespan: 10-15 years (vs. 15-20 in cooler climates)
Cost:
- 1,500 sq ft: $4,000-$7,000
- 2,500 sq ft: $6,000-$10,000
- 3,500 sq ft: $8,000-$14,000
Pro tip: Always check HVAC age during inspection. If 12+ years old, budget for replacement.
3. Roof Replacement
Texas challenge: Hail storms, high heat, and UV exposure shorten roof life
Lifespan: 15-20 years for asphalt shingles
Cost per square foot:
- Asphalt shingles: $3.50-$5.50
- Architectural shingles: $4.50-$7.00
- Metal roof: $7.00-$12.00
Example: 2,000 sq ft roof = $7,000-$11,000 (asphalt)
4. Termites & Pests
Texas problem: Termites thrive in humidity
Inspection cost: $75-$150
Treatment cost: $500-$3,000
Structural repair: $3,000-$10,000+ if damage is severe
Always get a termite inspection before closing.
Room-by-Room Rehab Costs (Texas)
Kitchen Remodel
Budget:
- Budget/cosmetic: $8,000-$15,000
- Mid-range: $15,000-$30,000
- High-end: $30,000-$60,000+
Cost breakdown:
- Cabinets: $3,000-$15,000
- Countertops: $1,500-$5,000 (granite/quartz)
- Appliances: $2,000-$5,000 (stainless steel)
- Flooring: $1,000-$3,000
- Plumbing/electrical: $1,500-$4,000
- Labor: 30-40% of total
Pro tip: Stick to mid-range finishes for most Texas markets. Buyers want updated, but won't pay for luxury.
Bathroom Remodel
Budget:
- Powder room: $3,000-$8,000
- Full bath: $8,000-$15,000
- Primary bath: $12,000-$25,000
Cost breakdown:
- Vanity & sink: $500-$2,000
- Toilet: $200-$600
- Tub/shower: $1,000-$4,000
- Tile (floor & walls): $2,000-$6,000
- Fixtures & hardware: $500-$1,500
- Plumbing/electrical: $1,500-$3,000
Pro tip: Kitchen and bathroom renovation costs $100 to $250 per square foot based on the size and quality of materials. Focus on clean, functional, and neutral to appeal to broadest buyer base.
Flooring
Options & costs per sq ft (installed):
- Carpet: $2-$5
- Vinyl plank (LVP): $3-$7
- Laminate: $3-$6
- Tile: $5-$12
- Hardwood: $8-$15
Most popular for flips: LVP (luxury vinyl plank)
Why: Waterproof, durable, looks like wood, budget-friendly
Example: 1,500 sq ft LVP = $4,500-$10,500
Paint (Interior)
Cost: $2-$6 per sq ft (walls + trim)
Example: 1,500 sq ft house = $3,000-$9,000
Pro tip: Use neutral colors (gray, beige, white). Never use bold colors on flips.
Exterior Paint
Cost: $1.50-$4 per sq ft
Example: 2,000 sq ft exterior = $3,000-$8,000
Hidden Costs Flippers Forget
Rehab isn't just materials and labor. Don't forget:
1. Permits
Cost: $500-$3,000 depending on scope
When required:
- Electrical panel upgrades
- Plumbing modifications
- Structural changes
- HVAC replacement
- Adding square footage
Penalty for skipping: Fines, forced removal of work, title issues at resale
2. Dumpster & Disposal
Cost: $300-$800 per dumpster (10-20 yard)
How many: 1-3 dumpsters for moderate rehabs, 3-6 for gut jobs
3. Utilities During Rehab
Cost: $150-$400/month (electric, water, gas)
Duration: 2-6 months depending on project
4. Insurance
Cost: $800-$2,000 for 6 months (vacant property insurance)
Why needed: Standard homeowner's insurance doesn't cover vacant properties under renovation
5. Carrying Costs
Includes:
- Mortgage/loan payments
- Property taxes
- HOA fees
- Insurance
Example: $200K property financed at 10% = $1,667/month interest + $400 taxes/insurance = $2,000+/month
Timeline matters: Every extra month adds $2,000-$4,000 in carrying costs
How to Estimate Rehab Costs Accurately
Step 1: Walk the Property with a Contractor
Why: Their experience catches issues you'll miss
Cost: Free (if they're bidding) or $100-$300 (consultation)
Step 2: Break Down by Category
Don't estimate the whole house at once. Break it into:
- Roof
- Foundation
- HVAC
- Electrical
- Plumbing
- Kitchen
- Bathrooms
- Flooring
- Paint (interior)
- Paint (exterior)
- Landscaping
- Appliances
- Permits
- Contingency (10-15%)
Step 3: Get 3 Bids
Always get multiple contractor quotes.
Warning: The lowest bid isn't always the best. Check:
- References
- License/insurance
- Timeline
- Payment terms
Step 4: Add 15% Contingency
Every flip has surprises:
- Hidden damage behind walls
- Code violations discovered
- Material price increases
- Timeline delays
Budget formula:
Total Rehab Budget = (Estimated Costs × 1.15)
Example: $40K estimate → Budget $46K
Texas Market Rehab Cost Benchmarks
DFW Metroplex
- Cosmetic: $12-$18/sq ft
- Moderate: $30-$45/sq ft
- Heavy: $60-$85/sq ft
Houston
- Cosmetic: $10-$16/sq ft
- Moderate: $28-$40/sq ft
- Heavy: $55-$80/sq ft
Austin
- Cosmetic: $15-$22/sq ft
- Moderate: $35-$50/sq ft
- Heavy: $70-$95/sq ft
(Austin is 15-20% more expensive due to higher labor/material costs)
San Antonio
- Cosmetic: $10-$15/sq ft
- Moderate: $25-$38/sq ft
- Heavy: $50-$75/sq ft
When to Walk Away
Some rehabs aren't worth it:
❌ Foundation repair over $25K
❌ Structural issues requiring engineer
❌ Mold remediation over $10K
❌ Flood damage (insurance/title issues)
❌ Unpermitted additions that can't be legalized
❌ Environmental hazards (asbestos, lead, contaminated soil)
If estimated rehab exceeds 70% of ARV, walk away unless you're experienced.
The Bottom Line
Accurate rehab estimates = profitable flips.
Guessing = losing money.
Use per-square-foot guidelines as a starting point, but always:
✅ Walk the property in person
✅ Get contractor bids
✅ Add 15% contingency
✅ Account for Texas-specific issues (foundation, HVAC, roof)
✅ Include hidden costs (permits, utilities, carrying costs)
PropPipeline helps you find wholesale deals with estimated rehab costs already calculated—so you can analyze deals faster and avoid costly mistakes.
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