A line-item rehab budget is one of the fastest ways to improve financing speed and execution.
Lenders underwrite uncertainty, and a vague budget creates uncertainty immediately.
A proper budget ties costs to milestones that can be inspected and funded through draws.
Your budget should also include contingency, because surprises are normal in value-add projects.
When your budget is structured correctly, draws are faster and timeline risk drops.
Use the categories below to build a budget that supports underwriting and protects profit.
At a glance
- Line-item budgets speed underwriting and reduce questions
- Milestone-aligned categories make draw releases smoother
- Contingency prevents project-killing cash crunches
- Permits and soft costs are commonly forgotten
- Don’t ignore holding costs in your deal model
- Document assumptions so you can defend them
Rehab budget categories (copy/paste framework)
Use these categories as your default checklist:
1) Demo and site prep
- Demo labor, dump fees, cleanup, site prep
2) Framing and structural (if applicable)
- Framing repairs, beam work, subfloor, structural engineer (if needed)
3) Mechanical systems
- Plumbing
- Electrical
- HVAC [Heating, Ventilation, and Air Conditioning]
4) Insulation and drywall
- Insulation, drywall hang/finish, texture
5) Interior finishes
- Paint, trim, doors, hardware, flooring
6) Kitchens
- Cabinets, countertops, appliances, plumbing fixtures, labor
7) Bathrooms
- Tile, vanities, fixtures, glass, labor
8) Exterior
- Roof (if needed), windows, siding/stucco, paint, landscaping, fencing
9) Permits and soft costs
- Permits, plan sets, city fees, inspections
10) General conditions
- Site supervision, temporary utilities, security, equipment rentals
11) Contingency
- A contingency line (commonly 10–15% depending on scope complexity)
Tie the budget to a draw schedule
Your draw schedule should map to milestones an inspector can verify. If a budget line cannot be verified, it will create friction. Group line items into draw stages that match real progress.
The three budget mistakes that cause delays
- One-line budgets (“Rehab: 50,000”) with no categories
- No contingency, then surprise repairs trigger emergency funding
- Missing permits and soft costs, which create timeline slip and extra expense
Next step
Fix & flip program: https://ambitionlending.co/fix-flip-loans/
Hard money program: https://ambitionlending.co/hard-money-loans/
Submit a deal: https://ambitionlending.co/contact/
Frequently Asked Questions
Rehab Budget Template: Line-Item Categories Investors Should Never Forget
A line-item rehab budget is one of the fastest ways to improve financing speed and execution.
Lenders underwrite uncertainty, and a vague budget creates uncertainty immediately.
A proper budget ties costs to milestones that can be inspected and funded through draws.
Your budget should also include contingency, because surprises are normal in value-add projects.
When your budget is structured correctly, draws are faster and timeline risk drops.
Use the categories below to build a budget that supports underwriting and protects profit.
At a glance
- Line-item budgets speed underwriting and reduce questions
- Milestone-aligned categories make draw releases smoother
- Contingency prevents project-killing cash crunches
- Permits and soft costs are commonly forgotten
- Don’t ignore holding costs in your deal model
- Document assumptions so you can defend them
Rehab budget categories (copy/paste framework)
Use these categories as your default checklist:
1) Demo and site prep
- Demo labor, dump fees, cleanup, site prep
2) Framing and structural (if applicable)
- Framing repairs, beam work, subfloor, structural engineer (if needed)
3) Mechanical systems
- Plumbing
- Electrical
- HVAC [Heating, Ventilation, and Air Conditioning]
4) Insulation and drywall
- Insulation, drywall hang/finish, texture
5) Interior finishes
- Paint, trim, doors, hardware, flooring
6) Kitchens
- Cabinets, countertops, appliances, plumbing fixtures, labor
7) Bathrooms
- Tile, vanities, fixtures, glass, labor
8) Exterior
- Roof (if needed), windows, siding/stucco, paint, landscaping, fencing
9) Permits and soft costs
- Permits, plan sets, city fees, inspections
10) General conditions
- Site supervision, temporary utilities, security, equipment rentals
11) Contingency
- A contingency line (commonly 10–15% depending on scope complexity)
Tie the budget to a draw schedule
Your draw schedule should map to milestones an inspector can verify. If a budget line cannot be verified, it will create friction. Group line items into draw stages that match real progress.
The three budget mistakes that cause delays
- One-line budgets (“Rehab: 50,000”) with no categories
- No contingency, then surprise repairs trigger emergency funding
- Missing permits and soft costs, which create timeline slip and extra expense
Next step
Fix & flip program: https://ambitionlending.co/fix-flip-loans/
Hard money program: https://ambitionlending.co/hard-money-loans/
Submit a deal: https://ambitionlending.co/contact/
Frequently Asked Questions
Why do lenders care about a line-item rehab budget?
Because it reduces uncertainty. It shows scope realism, improves valuation confidence, and makes draw releases smoother.
How detailed should the budget be?
Detailed enough that each major component has a cost and can be tied to a milestone: kitchens, baths, mechanicals, flooring, paint, exterior, permits, and contingency.
Should I include contingency?
Yes. Surprises are normal. Contingency protects the project and reduces the chance of funding interruptions.
Do permits belong in the rehab budget?
Yes. Permits, plan sets, and city fees are real costs and can impact timeline materially.
How do I tie my budget to draws?
Group costs into milestone stages that can be inspected and verified, and document progress with photos and invoices.
What’s the fastest way to get draws approved?
Milestone-based requests with before/after photos, invoices, and an updated budget vs actuals summary.
Fix & flip program: https://ambitionlending.co/fix-flip-loans/
Hard money program: https://ambitionlending.co/hard-money-loans/
Submit a deal: https://ambitionlending.co/
