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.
Rehab estimates make or break flips. Underestimate by 20 percent and a $30,000 profit can shrink to almost nothing. Overestimate and you'll pass on deals that would have worked.
This guide covers the three levels of rehab, Texas-specific costs, room-by-room ranges, the costs people forget, and how to build an estimate you can trust.
A note on numbers: the ranges below are rough guides. Labor and material costs change, and they vary by city, neighborhood, and contractor. Use them to sanity-check a deal, then get real bids.
The three levels of rehab
Level 1: Cosmetic
What it covers: paint, flooring, fixtures, hardware, appliances, minor drywall repair, and curb appeal. No major systems.
Rough Texas range: $10 to $20 per square foot Example: 1,500 sq ft house, about $15,000 to $30,000 Typical timeline: 2 to 4 weeks
Level 2: Moderate
What it covers: everything in Level 1, plus kitchen and bath updates, and some work on systems such as HVAC, the electrical panel, plumbing repairs, or roof repairs.
Rough Texas range: $25 to $40 per square foot Example: 1,500 sq ft house, about $37,500 to $60,000 Typical timeline: 6 to 10 weeks
Level 3: Heavy (gut renovation)
What it covers: gutting to the studs, new electrical and plumbing, HVAC and roof replacement, foundation repair, structural changes, and full kitchens and baths.
Rough Texas range: $50 to $80+ per square foot Example: 1,500 sq ft house, about $75,000 to $120,000 Typical timeline: 3 to 6 months
Texas-specific costs
Foundations
Expansive clay soils across much of North and Central Texas and the Houston area cause foundation movement, especially in older homes.
- Typical repairs: a few thousand dollars for minor pier work, up to $20,000 to $50,000+ for severe structural problems
- Warning signs: stair-step cracks in brick, doors and windows that stick, sloping floors, gaps at the ceiling line
- Tip: for older homes, get a foundation evaluation before you commit and keep a contingency for surprises
HVAC
Long, hot summers mean HVAC systems work hard. Many last 10 to 15 years in Texas.
- Replacement: often $6,000 to $15,000 depending on size and efficiency
- Tip: check the unit's manufacture date on the data plate. If it's 12 or more years old, budget for replacement.
Roofs
Hail, heat, and sun shorten roof life. Asphalt shingle roofs often last 15 to 20 years.
- Replacement: often $8,000 to $20,000 for a typical single-family home, depending on size, pitch, and material
- Tip: ask about past insurance claims, and check whether the roof was replaced after recent hail storms
Termites and pests
Termites are common across the state.
- Inspection: about $75 to $150
- Treatment: about $500 to $3,000
- Damage repair: can run much higher if the structure is affected
Room-by-room ranges
Kitchen
- Cosmetic refresh (paint cabinets, new counters, hardware, appliances): about $8,000 to $15,000
- Mid-range remodel: about $15,000 to $30,000
- High-end: $30,000 and up
Most flips in Texas sell best with clean, mid-range finishes. Buyers want updated, but they won't pay for luxury in most price ranges.
Bathrooms
- Half bath: about $3,000 to $8,000
- Full hall bath: about $8,000 to $15,000
- Primary bath: about $12,000 to $25,000
Keep it clean, functional, and neutral.
Flooring (installed, per square foot)
| Material | Rough range |
|---|---|
| Carpet | $2 to $5 |
| Luxury vinyl plank (LVP) | $3 to $7 |
| Laminate | $3 to $6 |
| Tile | $5 to $12 |
| Hardwood | $8 to $15 |
LVP is the most common choice for flips: water-resistant, durable, and affordable.
Paint
- Interior: about $2 to $6 per square foot of floor area, including walls and trim
- Exterior: varies widely with siding type and height
Stick to neutral colors.
Costs people forget
Permits. Often a few hundred to a few thousand dollars, required for electrical, plumbing, HVAC, structural changes, and additions. Skipping them can mean fines, rework, and problems at resale.
Dumpsters and disposal. Several hundred dollars per dumpster, and gut jobs can need several.
Utilities during the rehab. Electric, water, and gas, often $150 to $400 a month.
Insurance. Standard homeowner's policies often don't cover vacant homes under renovation. Get a builder's risk or vacant property policy.
Carrying costs. Loan interest, property taxes, insurance, and HOA dues. For example, a $200,000 loan at 10 percent interest costs about $1,667 a month in interest alone. Add taxes and insurance and you're past $2,000 a month. Every month of delay costs real money.
How to estimate accurately
- Walk the property with a contractor. They'll catch things you miss.
- Break the job into categories: roof, foundation, HVAC, electrical, plumbing, kitchen, baths, flooring, interior paint, exterior, landscaping, appliances, and permits.
- Get at least three bids, and check references, licensing where required, insurance, timeline, and payment terms. The lowest bid isn't always the best.
- Add a contingency of 10 to 20 percent. Every rehab has surprises behind the walls.
Example: a $40,000 estimate with a 15 percent contingency becomes a $46,000 budget.
Rough benchmarks by market
Costs differ across Texas. As a general pattern:
- Austin tends to be the most expensive, with higher labor costs.
- DFW is often in the middle to upper range.
- Houston and San Antonio are often somewhat lower.
Local bids will always be more accurate than any statewide average.
When to walk away
Be cautious, or walk, when you see:
- Major foundation or structural repairs that need an engineer, without a price that reflects them
- Extensive mold or water damage
- A history of flooding
- Unpermitted additions that can't be legalized
- Asbestos or other hazards that would need costly abatement during your rehab
The test is simple: after realistic repair costs, contingency, and carrying costs, does the deal still fit your numbers? If you use the 70% rule, the purchase price plus repairs should stay at or under 70 percent of ARV.
The bottom line
Per-square-foot ranges are a starting point, not an estimate. Walk the property, get bids, add a contingency, and account for Texas-specific issues like foundations, HVAC, and roofs, plus the costs people forget.
On PropPipeline, wholesalers list their repair estimate alongside the asking price and ARV. Treat it as a starting point and check it against your own walkthrough. Browse Texas wholesale deals, and see our due diligence checklist before you commit.