Rehab Cost Estimator

Produces professional, itemized renovation cost estimates for investment properties. Two exit strategies analyzed side-by-side: Full Rehab (investor flip to retail) and Wholetail (light cosmetic for quick sale to another investor or retail-lite buyer).

All pricing is calibrated to the local market where the property sits — not national averages.

Single-Estimate Approach

This skill produces ONE cost estimate per line item — not a Low/Mid/High range. The estimate targets the low-to-mid range of real-world contractor pricing (roughly the 35th percentile between Low and Mid reference prices in rehab-categories.md). This keeps estimates conservative and closer to what actual contractor bids come back at, based on real deal calibration data showing that Low/Mid/High ranges led to over-estimation. When in doubt, lean toward the lower end — real contractors tend to come in closer to low than mid on most line items.

When to Read Reference Files

This skill uses progressive disclosure. Read these files at the specific steps indicated:

File	When to Read	What It Contains
`references/real-deal-calibration.md`	Step 2 (FIRST — before scoping)	CRITICAL: Verified unit prices from a real contractor SOW, scoping rules, and the 60-65% Rule sanity check. This file overrides all other pricing when there's a conflict.
`references/rehab-categories.md`	Step 3 (Scope of Work)	Complete line-item categories with calibrated $/unit for every repair item
`references/local-pricing-guide.md`	Step 4 (Local Pricing)	How to research and apply local labor/material adjustments by market
`references/finish-tiers.md`	Step 3 (Scope of Work)	Defines 4 finish tiers (Builder, Mid, Investor-Flip, Retail-Premium) with material specs
`references/wholetail-vs-rehab.md`	Step 3 (Scope of Work)	Exactly which items differ between wholetail and full rehab scopes
`scripts/generate_rehab_excel.py`	Step 6 (Deliverables)	Generates the Excel workbook with all sheets

Workflow Overview

Step 1: Gather Property Intel
Step 2: Photo & Condition Analysis
Step 2.5: Read Calibration Data (MANDATORY — read real-deal-calibration.md before scoping)
Step 3: Build Scope of Work (read rehab-categories.md, finish-tiers.md, wholetail-vs-rehab.md)
Step 4: Localize Pricing (read local-pricing-guide.md)
Step 5: Cross-Reference Comps (validate against Bucket B finishes)
Step 5.5: Calculate Full Deal Costs (financing, holding, buying, selling)
Step 6: Generate Deliverables (run scripts)
Step 7: Present to User

Step 1: Gather Property Intel

Collect these inputs from the user. Some may come from uploaded files (comp reports, inspection reports, MLS listings), photos, or conversation:

Required:

Property address (full: street, city, state, zip)
Square footage (GLA)
Bed/bath count
Year built
Current condition description OR photos

Helpful but optional:

Comp report or ARV (from the comping skill or user-provided)
Purchase price / contract price
Specific known issues (roof age, HVAC status, foundation, etc.)
User's target exit strategy preference
User's budget constraints
Whether the user has a GC or is self-managing
Financing details (loan type, LTV, interest rate, points) — defaults to hard money assumptions if not provided
Hold time estimate (months from purchase to sale) — will be dynamically calculated from rehab scope + comp DOM if not provided
Comp report days-on-market (DOM) — if the comping skill was run, pull median DOM from Bucket B renovated comps to estimate resale timeline
Property tax amount (annual) — will research if not provided
Whether property has HOA fees

If the user provides a comp report (especially one from the real-estate-comping skill), extract:

Bucket A median PPSF (unrenovated)
Bucket B median PPSF (renovated)
Renovation premium percentage
What finishes the renovated comps had (if noted in comp comments)
Subject property condition notes

Step 2: Photo & Condition Analysis

If the user provides property photos or an inspection report, analyze them systematically. Go room by room, system by system:

Exterior Checklist

Component	What to Look For
Roof	Missing/curled shingles, age indicators, moss/algae, flashing condition, gutter state
Siding	Cracks, rot, peeling paint, missing sections, material type (vinyl, wood, brick, fiber cement)
Windows	Single vs double pane, frame condition, fogging between panes, operability
Foundation	Visible cracks, bowing, water staining, settlement signs
Concrete	Driveway/walkway condition, heaving, major cracks
Landscaping	Overgrowth, grading issues, drainage concerns
Garage	Door condition, opener, structural concerns

Interior Checklist

Component	What to Look For
Kitchen	Cabinet condition, countertop material/condition, appliance age/working, layout functionality
Bathrooms	Tile condition, fixture age/style, vanity condition, toilet, tub/shower condition
Flooring	Type throughout (carpet, hardwood, vinyl, tile), condition, subfloor concerns
Walls/Ceilings	Drywall condition, cracks, water stains, texture type, paint condition
Doors/Trim	Interior door condition, hardware, baseboard/casing condition
Electrical	Panel type/age (fuse box vs breaker), outlet count, visible wiring issues
Plumbing	Pipe material visible (copper, PEX, galvanized, poly), fixture condition, water pressure
HVAC	System type, age, condition, ductwork visible
Water Heater	Type, age, capacity

For each item, assign a condition rating:

Good — Functional and presentable, no work needed
Fair — Functional but dated, cosmetic update recommended for flip
Poor — Needs replacement or significant repair
Missing/Failed — Non-functional or absent, must address

Step 2.5: Read Calibration Data (MANDATORY)

Read references/real-deal-calibration.md NOW — before building any scope of work.

This file contains verified unit prices from a real contractor SOW and the scoping rules that prevent over-estimation. Key rules:

Scoping Discipline — Room-by-Room, NOT System-by-System

Real contractors scope by walking room to room and noting ONLY what each room needs. The skill must do the same:

Walk each room from the inspection photos
For each room, note ONLY what visibly needs to change
Common per-room items: paint, flooring, outlets/switches ($100/room), light fixtures, doors
NOT common: new windows (only if damaged/failed), trim (only if damaged)

DO Scope:

Items visibly damaged, broken, or missing
Items outdated enough to hurt resale (old cabinets, dated fixtures when comps show modern)
Code requirements (smoke detectors, GFCI outlets in wet areas)
Cosmetic updates that comps show (LVP flooring, updated lighting)
Appliances — ALWAYS include a full appliance package in the full rehab scope when renovated comps show updated appliances (almost always). This is the most commonly missed category. Typical SS package: fridge ($1,400) + dishwasher ($550) + microwave ($300) + stove ($700) = $2,950. Typical W/B package: fridge ($650) + dishwasher ($450) + microwave ($250) + stove ($450) = $1,800. Include even if existing appliances "work" — dated appliances kill buyer perception in a flip.
AC unit — include when the existing system is >15 years old OR when the unit looks visibly dated/worn in photos, even if technically functional. Budget $2,800 for AC replacement. Buyers and inspectors flag old HVAC systems. Exception: if confirmed replaced within 2-3 years, exclude it.
Smoke detectors — always include in any full rehab. Budget $30/ea × (bedrooms + 1 per floor). Code requirement.

DON'T Scope:

HVAC if confirmed newer (≤3 years old) by seller, listing, or visible manufacturer date — note "recently replaced, pending inspection"
Full panel upgrade unless evidence of undersized (fuse box, < 100 amp)
System-wide outlet replacement — only replace in rooms being renovated
All baseboard replacement — only where visibly damaged or missing. But DO add shoe mold wherever new flooring is installed.
Staging, photography, permits — these are NOT contractor costs (separate budget items)
Roof — do NOT include roof replacement in the base estimate unless the roof is actively failing (visible holes, tarps, severe structural sag). Instead, note as "⚠️ Needs inspection — budget $7,000-$12,000 separately if replacement required." The roof is the single largest line item that inflates estimates when included speculatively. Real investors verify roof condition before committing this cost. If the user specifically asks to include the roof OR provides evidence of active failure, include it.
Every window — only replace damaged, single-pane, or failed-seal windows. Count from photos, don't assume all need replacing. When photo evidence is ambiguous, estimate conservatively — err on the LOWER count and note uncertainty.
Garage door — do NOT include garage door replacement ($1,000-$1,700) unless the door is visibly broken (panels missing, severe damage, won't open). A dated-looking garage door alone is not sufficient reason to replace. Note as optional: "⚠️ Garage door replacement if needed: $1,000-$1,700."
Speculative exterior items — do NOT add tuckpointing, gutter repair, or other exterior items unless they are CLEARLY visible in photos as damaged or failing. Age alone is not enough to include these. Only scope soffit/fascia patches where visible damage is confirmed.

Demo & Cleanup Scoping

Do NOT default to "full house demo + 2 dumpsters" unless the property genuinely requires gut-level demolition. Most investor flips need targeted demo, not a full gut:

Light cleanup = general cleanup + hauling ($1,000-$1,500) — for houses needing cosmetic updating but not trashed
Moderate demo = targeted demo (kitchen cabinets, bath tile, old flooring) + 1 dumpster ($2,000-$3,000) — most common for standard flips
Full demo = gut demo + 2 dumpsters ($4,000-$5,000) — ONLY for hoarder houses, fire damage, or true gut-to-studs Ask: "How much am I ripping out?" If the answer is "kitchen cabinets, bathroom tile, and old carpet" — that's moderate demo at most.

The 60-65% Sanity Check

After building the estimate, check $/SF against these benchmarks:

$25-35/SF = Standard investor flip (not a gut) in a Tier 2 market
$40-55/SF = Heavy renovation with systems (plumbing, electrical, HVAC)
$60-80/SF = Full gut-to-studs rebuild only

If your estimate exceeds $40/SF on a standard flip, you are almost certainly over-scoping. Go back and ask: "Would a real contractor actually replace this, or would they leave it alone?"

Paint Estimation Rule

Quote paint as a SINGLE all-in rate (walls + trim + ceilings combined):

Calculate: GLA × 3.5 = total paintable wall SF
Apply rate: $2.00-$3.00/SF (Tier 2) or $3.00-$4.50/SF (Tier 1/HCOL)
Add primer at HALF the total SF × $2.00/SF only if needed (dark colors, stains, smoke)
Do NOT break paint into 3 separate line items (walls, trim, ceiling)

Step 3: Build Scope of Work

Read references/rehab-categories.md now — it contains every line item with calibrated pricing. Read references/finish-tiers.md now — it defines material quality levels. Read references/wholetail-vs-rehab.md now — it defines scope differences.

Build TWO parallel scopes of work:

Full Rehab Scope

Target: Retail-ready, matches or exceeds renovated comps (Bucket B). The goal is to produce a home that competes with the best renovated comps in the market. Think "HGTV ready."

Finish level: Investor-Flip Grade (see finish-tiers.md) unless comp analysis suggests otherwise.

Include every item rated Fair or worse. Also include items rated Good that are visually dated even if functional (e.g., brass fixtures in a 2025 market, oak cabinets when comps show white shaker).

Wholetail Scope

Target: Clean, functional, move-in ready but NOT retail-show-ready. Buyer is often another investor or a budget-conscious retail buyer. The goal is maximum ROI with minimum spend — fix what's broken, clean what's dirty, and don't over-improve.

Finish level: Builder Grade to Mid Grade (see finish-tiers.md).

Only include items rated Poor or Missing/Failed, plus:

Deep clean throughout
Fresh paint (walls and trim)
Basic flooring if carpet is stained/worn
Any safety/code issues
Curb appeal basics (pressure wash, basic landscaping)

Pricing Hierarchy — Repair Cheat Sheet First

The company's Repair Cheat Sheet is the standard estimating tool. It defines how the team budgets deals. The AI MUST produce estimates that align with the cheat sheet's methodology and pricing — NOT the contractor SOW line-item detail. The contractor SOW (in real-deal-calibration.md) is verification data showing that cheat sheet prices are in the right ballpark, but the cheat sheet is the budgeting standard.

Pricing source priority (highest to lowest):

User-provided pricing — always overrides everything
Repair Cheat Sheet prices — the company's estimating standard (see table below)
real-deal-calibration.md verified prices — contractor verification data (use only when cheat sheet has no price for an item)
rehab-categories.md reference prices — national reference fallback (adjust by local cost index)

Key Cheat Sheet prices (Tier 2 / Dayton, OH baseline):

Item	Cheat Sheet Price	Unit	Notes
LVP / LVT	$3.50	SF	Standard investor-grade. Only use $5.50 (Lifeproof premium) when ARV > $300K or comps show premium flooring
Carpet	$3.00	SF	Standard. Only use $4.25 when ARV > $300K
Tile	$12.00	SF	Consistent across all sources
Interior paint	$3.00	SF	All-in rate (walls + trim + ceiling)
Primer	$2.00	SF	Apply to ~50% of paintable area when needed
Drywall (new)	$5.00	SF	Cheat sheet method. Do NOT use $105/sheet unless gut-level demo
Drywall punch repair	$250.00	EA	Per occurrence
Kitchen cabinets (larger, rip+replace)	$3,900.00	EA	Standard for most flips
Kitchen cabinets (smaller, rip+replace)	$2,900.00	EA	Galley or small kitchens
Countertop (granite, small)	$2,500.00	EA	Lump sum for standard kitchen
Full bath renovation	$4,000.00	EA	Standard full bath
Light fixtures (whole house)	$1,000.00	EA	Lump sum, not per-fixture
Outlets/switches (whole house)	$400.00	EA	Lump sum, not per-room
Interior door slab	$220.00	EA	Replace only damaged doors
Exterior door	$700.00	EA	Standard size
Misc trim (whole house)	$500.00	EA	Lump sum for shoe mold, baseboard, misc
Window (vinyl replacement)	$550.00	EA	Price is correct; QUANTITY must be conservative
General cleanup	$1,000.00	EA	Light cleanup for standard flips
Soffit patch	$100.00	EA	Per section
Fascia patch	$100.00	EA	Per section

Granularity rule: When the cheat sheet uses a lump sum (e.g., "Light fixtures: $1,000"), estimate as a lump sum — do NOT itemize individual fixtures. When the cheat sheet uses per-unit pricing (e.g., "Windows: $550/EA"), estimate per-unit with a conservative quantity. Match the cheat sheet's level of detail.

Quantity Estimation

For each line item, estimate quantities based on:

Square footage — flooring, paint, drywall (use GLA + waste factor)
Room counts — bathrooms, bedrooms drive fixture counts
Linear feet — trim, baseboard (estimate from room perimeters: typical 12x12 room = 48 LF minus doors/windows)
Unit counts — doors, windows, outlets, fixtures (estimate from bed/bath count and typical home layout)
Photos — use visible evidence to refine estimates

Typical estimation shortcuts when exact measurements aren't available:

Item	Estimation Method
Interior paint	GLA × 3.5 = paintable wall SF. Multiply by cheat sheet rate: $3.00/SF (Tier 2) or $4.00/SF (Tier 1/HCOL). Single line item covering ALL rooms including secondary spaces — do NOT break into separate entries for main vs secondary areas. Do NOT add paint registers/vents separately (covered by contingency).
Primer	(GLA × 3.5) × 0.5 = primer SF (only where needed: dark colors, stains, smoke). Multiply by $2.00/SF.
Flooring	Estimate total SF by room type: LVP areas (living, kitchen, dining, hallways, secondary spaces) + Carpet areas (bedrooms) + Tile areas (bathrooms, laundry). Use cheat sheet prices: LVP $3.50/SF, Carpet $3.00/SF, Tile $12.00/SF. Only use premium LVP pricing ($5.50/SF Lifeproof) when ARV > $300K and comps specifically show premium flooring brands. Include 10% waste factor for LVP/tile.
Trim (all types)	Use cheat sheet lump sum: $500 for whole-house misc trim (shoe mold, baseboard, casing). Do NOT itemize linear footage unless the user specifically requests a detailed SOW. The $500 lump covers shoe mold in rooms with new flooring plus baseboard repairs where visibly damaged.
Interior doors	(Bedrooms × 1) + (Bathrooms × 1) + 2 (closets per bedroom) + 2 (utility). Only replace if damaged — not all doors in the house.
Electrical	Use cheat sheet lump sum: $400 for whole-house outlet/switch updates in a standard flip. Only itemize per-room ($100/room) when doing extensive electrical work in 6+ rooms.
Light fixtures	Use cheat sheet lump sum: $1,000 for whole-house light fixture updates. Do NOT itemize individual fixtures unless the user specifically requests it or the home has 15+ fixtures to replace.
Drywall	Use cheat sheet method: estimate SF of drywall needed × $5.00/SF for standard flips. For a cosmetic flip, total drywall is typically $500-$1,000 (100-200 SF of new drywall). Add $250 for punch repair if needed. Only use per-sheet pricing ($105/sheet, 10-15 sheets) when there is visible evidence of widespread water damage, structural repairs, or gut-level demolition. Most flips need spot repairs, not full sheets in every room.
Windows	Count from photos, not assumptions. Only replace if damaged/failed/single-pane. A typical 3/2 ranch has 12-15 windows total — usually only 50-65% need replacement (6-10 windows). Over-counting by even 3 windows = $1,650 error at $550/ea. Always round DOWN and note the uncertainty. Count only windows with CLEAR evidence of failure.
Kitchen fixtures	For standard flips, budget kitchen fixtures (faucet, sink, disposal, backsplash, pulls, ice maker) as a $500-800 allowance — do NOT itemize each fixture separately. Itemized kitchen fixtures add ~$1,300 of over-detail that doesn't match how the team budgets deals. Only itemize if the user specifically requests line-item kitchen pricing. Total kitchen budget = cabinets (cheat sheet price) + countertop (cheat sheet price) + fixtures allowance ($500-800).
Underlayment	Cement board under bathroom tile: included in the bathroom renovation lump sum. Do NOT add as a separate line item (covered by contingency).
Appliances	ALWAYS include for full rehab when comps show updated appliances. SS package: fridge ($1,400) + dishwasher ($550) + microwave ($300) + stove ($700) = $2,950. W/B package: $1,800. Do NOT skip this just because existing appliances "work."
AC unit	Include at $2,800 when system is >15 years old or looks dated. Exclude ONLY if confirmed ≤3 years old. Separate from furnace — AC is the most commonly flagged item in buyer inspections.

CRITICAL: Complete Room Inventory

The most common scoping error is forgetting transitional and secondary spaces. After scoping all main rooms, do a second pass:

Forgotten Space	Typical Needs	Approx Cost
Back porch/Sunroom	Paint, LVP, shoe mold, light fixture, drywall, possibly storm door	$1,500-2,500
Mud room/Utility room	Paint, LVP, shoe mold, cabinet pulls, light fixture, door	$700-1,200
Foyer/Entry	LVP, shoe mold, baseboard, smart locks, paint exterior door	$400-700
Hallway(s)	LVP, shoe mold, light fixtures, switches	$700-1,200
Laundry area	Paint, flooring, possibly shelving	$300-600

Rule: Every space a buyer walks through must look finished. If it has walls and a floor, it needs to be in the scope.

Small Items — Covered by Contingency

Do NOT add a separate "small items" category. Items like caulk, registers, underlayment, storm doors, ice maker kits, and cabinet pulls are covered by the contingency percentage (15-20%). Itemizing these separately on top of contingency double-counts them and inflates the estimate by $400-700.

The only exception: if the user specifically asks for a fully itemized SOW with every small item broken out, then include them — but reduce the contingency to 10% to avoid double-counting.

Step 4: Localize Pricing

Read references/local-pricing-guide.md now.

National averages are a starting point, not the answer. Every market has different labor rates and material availability. The local-pricing-guide contains the methodology for adjusting costs based on:

Geographic cost index — use RSMeans or similar regional multipliers
Metro vs rural — labor availability affects rates
State/local permit costs — varies dramatically
Market-specific material costs — lumber varies by region, concrete by climate zone
Seasonal factors — winter construction in cold climates costs more

Use web search to find current labor rates for the specific city/metro area:

Search: "{city} {state}" contractor labor rates {current_year}
Search: "{city} {state}" renovation cost per square foot {current_year}
Search: "{metro area}" home renovation costs {current_year}
Search: "cost of living index" "{city}" OR "{metro area}"

Apply the local adjustment multiplier to every line item's labor component. Materials adjust less dramatically but still vary by region (10-20% swing in lumber/concrete).

Step 5: Cross-Reference Against Comps

This step ensures the rehab budget makes economic sense. If the user provided comp data (especially from the real-estate-comping skill):

Validate the Spread

Renovation Spread = Bucket B Median PPSF - Bucket A Median PPSF
Market Premium = Spread × Subject GLA = What the market pays for renovation

Full Rehab Budget should be 40-70% of Market Premium
  → If budget > 70% of premium: warn — thin margin, risk of over-improvement
  → If budget < 40% of premium: great margin, but verify scope isn't too light

Match Comp Finishes

Look at what the renovated comps (Bucket B) actually had:

If comps had granite counters, budget granite (not laminate)
If comps had LVP flooring, budget LVP (not carpet or tile)
If comps had stainless appliances, budget stainless
The rehab should MATCH the renovated comps, not exceed them — over-improvement kills ROI

Wholetail Validation

Wholetail Target Price = Bucket A Median PPSF × Subject GLA + 10-15% (light premium for clean/functional)
Wholetail Spread = Wholetail Target - Purchase Price - Wholetail Rehab Cost

Step 5.5: Calculate Full Deal Costs

A rehab estimate without the full deal cost picture is dangerously misleading. The renovation cost is often less than half the total cost of doing the deal. Financing, holding, and transaction costs can easily add $25K-40K+ to the total, and ignoring them makes profit projections look much better than reality.

The skill must calculate ALL deal costs — not just ARV minus purchase minus rehab. Real investors use a full deal analyzer that accounts for every dollar in and out.

When to Calculate

Calculate full deal costs whenever the user provides (or you can determine) both:

A purchase price or contract price
An ARV or estimated sale price

If either is missing, still produce the rehab estimate but note in caveats that deal analysis requires purchase price and ARV.

Financing Costs

If the user provides specific financing terms, use those. Otherwise, apply these hard money defaults (the most common financing for flips):

Parameter	Default	Notes
Loan amount	Purchase + Rehab (100% LTV)	Hard money typically finances acquisition + rehab
Interest rate	12% annual	Standard hard money rate in 2025-2026
Points	0%	Conservative — many lenders charge 1-3%
Hold time	Dynamically calculated (see below)	Rehab duration + marketing/sale period

Hold Time Calculation (Dynamic):

Instead of a static 4-month default, calculate hold time from the scope of work and comp data:

Total Hold Time = Rehab Duration + Marketing/Sale Period

Rehab Duration = estimated from scope complexity (see table below)
Marketing/Sale Period = median DOM from Bucket B renovated comps (if available)
                        OR default 45-60 days if no comp DOM available

Rehab Duration Benchmarks (by scope):

Scope Complexity	Typical Duration	Indicators
Light cosmetic (wholetail)	2-3 weeks	Paint, clean, minor repairs only
Moderate cosmetic	4-6 weeks	Kitchen/bath refresh, flooring, paint throughout
Full cosmetic	6-8 weeks	Full kitchen/bath remodel, all flooring, paint, fixtures
Full rehab (no structural)	8-12 weeks	Everything above + windows, HVAC, electrical, plumbing updates
Major rehab (structural)	12-16 weeks	Foundation, roof, load-bearing walls, additions

Round up to the nearest month for calculation. Add 2-4 weeks buffer for permitting delays in markets that require permits for rehab work.

Marketing/Sale Period:

If the comping skill was run, pull median DOM from the Bucket B (renovated) comps. This is the most accurate predictor of how long a renovated property takes to sell in that specific market.
If DOM data is available: Marketing/Sale Period = Bucket B median DOM (convert to months by dividing by 30, round up)
If DOM data is NOT available: Default to 1.5 months (45 days) for Tier 2 markets, 1 month for hot markets, 2 months for slow markets
Add 30 days for closing process on top of DOM (buyer financing, inspections, etc.)

Example (dynamic calculation):

Full cosmetic rehab → 2 months rehab duration
Bucket B median DOM = 28 days → ~1 month marketing + 1 month closing = 2 months sale period
Total hold time = 4 months

Example (no comp DOM available):

Full rehab, no structural → 3 months rehab duration
No DOM data → default 1.5 months marketing + 1 month closing = 2.5 months → round to 3 months
Total hold time = 6 months

If the user provides a specific hold time, always use that instead of calculating.

Financing cost formula:

Loan Amount = Purchase Price + Rehab Cost
Monthly Interest = Loan Amount × (Annual Rate / 12)
Total Financing Cost = Monthly Interest × Hold Time (months)

Example: $202,000 loan × (12% / 12) = $2,020/month × 4 months = $8,080

Holding Costs (Monthly)

Research or estimate these based on the property's location:

Item	How to Estimate	Typical Range
Property taxes	Search county auditor for annual amount, divide by 12	$150-$500/mo
Insurance	Investor/builder's risk policy	$150-$250/mo
Utilities — Gas	Seasonal, minimal during rehab	$50-$100/mo
Utilities — Water	Needed for construction	$50-$100/mo
Utilities — Electric	Needed for construction	$50-$100/mo
HOA/Condo fees	Only if applicable	$0-$400/mo
Other (lawn, security)	Minimal	$0-$75/mo

Total holding = Monthly total × Hold time (months)

Hold time here uses the dynamically calculated total (rehab duration + marketing/sale period) from the financing section above. This means holding costs scale accurately with the actual project timeline rather than a static assumption.

For a Tier 2 market (Midwest), typical monthly holding is $700-$1,000/month.

Buying Transaction Costs

Item	How to Calculate	Typical
Escrow/Attorney fees	Fixed	$750-$1,200
Title insurance	~0.77% of purchase price (tiered by state)	$800-$1,500
Title search	Often bundled with title insurance	$0-$500

Note: Title insurance uses state-regulated tiered rate schedules — not a flat percentage. The ~0.77% rate is calibrated from real Ohio closings and is a reasonable default for Tier 2 markets. Rates vary by state.

Selling Transaction Costs

Item	How to Calculate	Typical
Realtor fees	5-6% of sale price (ARV)	Largest selling cost
Title insurance	~0.64% of sale price (tiered by state)	$1,000-$2,500
Escrow/Attorney fees	Fixed	$750-$1,200
Recording fees	Fixed	$300-$500
Transfer/Conveyance tax	Varies by state (0.10-0.15% typical)	$200-$500
Home warranty	Buyer incentive	$500-$750

True Profit Calculation

Net Profit = ARV
           - Purchase Price
           - Rehab Cost
           - Financing Costs
           - Holding Costs
           - Buying Costs
           - Selling Costs

True ROI = Net Profit / (Purchase Price + Rehab Cost + Financing + Holding + Buying)

This is the number that matters. A deal that looks like $46K profit on simple math might actually be $31K after all costs — that's a 32% reduction. Getting this wrong means making bad buying decisions.

Step 6: Generate Deliverables

Compile all analysis into a JSON data structure, then run both report generators.

Data Structure

{
  "property": {
    "address": "string",
    "city": "string",
    "state": "string",
    "zip": "string",
    "county": "string",
    "gla": 0,
    "beds": 0,
    "baths": 0.0,
    "year_built": 0,
    "lot_size": "string",
    "property_type": "string",
    "condition_summary": "string"
  },
  "comp_reference": {
    "arv": 0,
    "bucket_a_ppsf": 0.0,
    "bucket_b_ppsf": 0.0,
    "renovation_premium_pct": 0.0,
    "market_premium_dollars": 0,
    "comp_finish_notes": "string",
    "purchase_price": 0
  },
  "condition_assessment": [
    {
      "category": "string",
      "item": "string",
      "condition": "Good|Fair|Poor|Missing",
      "notes": "string",
      "photo_reference": "string"
    }
  ],
  "local_pricing": {
    "city": "string",
    "state": "string",
    "cost_index": 0.0,
    "labor_rate_multiplier": 0.0,
    "material_rate_multiplier": 0.0,
    "notes": "string",
    "sources": ["string"]
  },
  "rehab_estimate": {
    "scope": "Full Rehab",
    "finish_tier": "Investor-Flip Grade",
    "categories": [
      {
        "category": "string",
        "items": [
          {
            "item": "string",
            "include": true,
            "qty": 0,
            "unit": "string",
            "unit_cost": 0.0,
            "total": 0.0,
            "notes": "string"
          }
        ],
        "category_total": 0.0
      }
    ],
    "subtotal": 0,
    "contingency_pct": 0.10,
    "contingency": 0,
    "grand_total": 0,
    "cost_per_sf": 0.0
  },
  "wholetail_estimate": {
    "scope": "Wholetail",
    "finish_tier": "Builder to Mid Grade",
    "categories": [
      "...same structure as rehab_estimate categories..."
    ],
    "subtotal": 0,
    "contingency_pct": 0.05,
    "contingency": 0,
    "grand_total": 0,
    "cost_per_sf": 0.0
  },
  "deal_analysis": {
    "arv": 0,
    "purchase_price": 0,
    "rehab_cost": 0,
    "wholetail_cost": 0,
    "hold_time_months": 4,
    "hold_time_breakdown": {
      "rehab_duration_weeks": 0,
      "rehab_duration_months": 0,
      "comp_dom_days": null,
      "marketing_period_months": 0,
      "closing_period_months": 1,
      "source": "calculated|user_provided",
      "notes": ""
    },
    "financing": {
      "loan_amount": 0,
      "ltv_pct": 1.0,
      "interest_rate_annual": 0.12,
      "points_pct": 0,
      "monthly_interest": 0,
      "total_financing_cost": 0,
      "notes": "Hard money, 100% LTV on purchase + rehab"
    },
    "holding_costs": {
      "property_taxes_monthly": 0,
      "insurance_monthly": 0,
      "hoa_monthly": 0,
      "gas_monthly": 0,
      "water_monthly": 0,
      "electric_monthly": 0,
      "other_monthly": 0,
      "total_monthly": 0,
      "total_holding": 0
    },
    "buying_costs": {
      "escrow_attorney": 900,
      "title_insurance": 0,
      "title_insurance_pct": 0.0077,
      "total_buying": 0
    },
    "selling_costs": {
      "realtor_pct": 0.05,
      "realtor_fees": 0,
      "title_insurance": 0,
      "title_insurance_pct": 0.0064,
      "escrow_attorney": 900,
      "recording_fees": 400,
      "transfer_tax": 0,
      "transfer_tax_pct": 0.0012,
      "home_warranty": 750,
      "total_selling": 0
    },
    "rehab_total_all_in": 0,
    "wholetail_total_all_in": 0,
    "rehab_net_profit": 0,
    "wholetail_net_profit": 0,
    "rehab_roi_pct": 0.0,
    "wholetail_roi_pct": 0.0,
    "mao_75_pct": 0,
    "rehab_margin_vs_premium": 0.0
  },
  "recommendations": ["string"],
  "caveats": ["string"]
}

Generate Reports

Install dependencies if needed:

pip install openpyxl --break-system-packages

Save the JSON data to a temp file
Run scripts/generate_rehab_excel.py <output_path> <json_path> to create the Excel workbook

Step 7: Present to User

Present the key findings in conversation BEFORE linking the files. Structure:

Summary Format

## Property: [Address]

### Condition Highlights
[3-5 most significant findings from photo/inspection analysis]

### Cost Estimates (Local pricing for [City, State])

| | Full Rehab | Wholetail |
|---|---|---|
| **Estimate** | $XX,XXX | $XX,XXX |
| **$/SF** | $XX.XX | $XX.XX |

### Full Deal Analysis (if ARV/purchase price available)
| Cost Category | Full Rehab | Wholetail |
|---------------|-----------|-----------|
| ARV (Sale Price) | $XXX,XXX | $XXX,XXX |
| Purchase Price | $XXX,XXX | $XXX,XXX |
| Rehab Cost | $XX,XXX | $XX,XXX |
| Financing Costs | $X,XXX | $X,XXX |
| Holding Costs (X mo) | $X,XXX | $X,XXX |
| Buying Costs | $X,XXX | $X,XXX |
| Selling Costs | $XX,XXX | $XX,XXX |
| **Total All-In Cost** | **$XXX,XXX** | **$XXX,XXX** |
| **Net Profit** | **$XX,XXX** | **$XX,XXX** |
| **ROI** | **XX%** | **XX%** |
| MAO (75% Rule) | $XXX,XXX | — |

### Top 5 Budget Line Items
[Largest cost items to set expectations]

### Recommendations
[2-3 strategic observations]

Then link the deliverable:

Excel workbook (itemized breakdown with all sheets)

Contingency Guidelines

Property Condition	Rehab Contingency	Wholetail Contingency
Good/Fair overall, post-1990	10%	5%
Good/Fair overall, pre-1990	15%	7%
Poor condition, any age	15-20%	10%
Pre-1970 (lead paint, galvanized, cast iron risk)	20%	10%
Unknown/limited photos	20%	10%
Known foundation/structural	20-25%	15%

Default contingency for most flips: 15-20%. The 10% default was found to underestimate real-world surprises. Real investors like Aaron use 20% contingency as their standard — this gives a buffer for the items you can't see in photos (behind walls, under floors, in the crawlspace). Only use 10% when the property is newer (post-1990) and you have comprehensive photos showing good overall condition.

Older properties (pre-1970) often have hidden costs: asbestos abatement, lead paint, knob-and-tube wiring, galvanized plumbing, cast iron drain lines. Flag these in the estimate when year_built suggests risk.

Key Principles

Scope like a contractor, not an inspector — Real contractors only replace what's broken, damaged, or too dated to sell. They do NOT replace every outlet, every door, all trim, or every window just because they're in the house. The #1 cause of over-estimation is over-scoping. When in doubt, leave it out.
The 60-65% Sanity Check — After building your estimate, divide total by GLA. If $/SF exceeds $40 on a standard flip (no systems work), you are over-scoping. Go back and cut items a real contractor would skip.
Local pricing matters — A $30/hr labor market (Dayton, OH) produces fundamentally different budgets than a $65/hr market (San Francisco). Always localize. The calibration file provides Tier 2 (Midwest) benchmarks.
Mirror the comps — The rehab finish level should match what sold in Bucket B. Over-improving beyond what comps support is the #1 rookie mistake.
Wholetail is a real strategy — Not every deal needs a full rehab. Sometimes $8K in paint, flooring, and cleaning nets more ROI than a $45K full gut. Present both options so the investor can choose.
Photos > assumptions — When photos are available, use what you can actually see. When they're not, disclose that estimates are based on age/condition assumptions and widen the contingency.
Permits, staging, and photos are NOT contractor costs — Never include these in the renovation estimate. They are separate budget line items in the deal analysis, not the SOW.
Paint is one line item — Real contractors quote paint as a single all-in $/SF rate. Never split into walls + trim + ceilings as 3 separate line items.
One estimate, not three — Produce a single cost per line item targeting the low-to-mid range. Real contractors give you one number, not a range. Three-tier estimates create analysis paralysis and the mid tends to over-estimate. If there's genuine uncertainty on a specific item (e.g., roof condition unknown), note the uncertainty in the item's notes field and widen the contingency percentage instead.
75% Rule for MAO — Max Allowable Offer = ARV × 75% − Rehab Cost. This replaces the traditional 70% rule to reflect realistic deal economics — the 70% rule is overly conservative and causes investors to pass on viable deals.
Rehab cost is NOT profit — A deal's true profit = ARV minus ALL costs: purchase, rehab, financing, holding, buying transaction costs, and selling transaction costs. Financing + holding + transaction costs typically add $25K-40K+ on top of the rehab budget. Showing profit as just "ARV minus purchase minus rehab" gives investors a dangerously inflated view that leads to bad buying decisions. Always calculate and present the full deal cost picture.