What Is Rehab Budget?
Also known as: Renovation Budget
A rehab budget is the planned repair and renovation spend for a property, usually estimated before a cash buyer decides whether a deal works.
A rehab budget is the planned repair and renovation spend for a property, usually estimated before a cash buyer decides whether a deal works.
Rehab Budget explained
The rehab budget shapes the entire deal. Cash buyers compare purchase price plus repairs against ARV, financing costs, holding time, and target profit. If the budget is too low, the buyer gets surprised later; if it is too high, the deal may be rejected even when it could work. Wholesalers improve dispo by presenting realistic repair assumptions and clear photos instead of vague condition notes.
Example
A buyer expects $55,000 in renovation costs. That number determines whether they can pay your asking price and still hit their profit target.
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