1. What is a Rehab Cost Calculator?

Definition: This calculator estimates the total rehabilitation costs by summing repair costs and improvement costs.

Purpose: It helps property investors, contractors, and homeowners accurately budget for property rehabilitation projects.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( C \) — Total rehab cost (USD)
• \( R \) — Repair costs (USD)
• \( I \) — Improvement costs (USD)

Explanation: The total rehabilitation cost is simply the sum of all repair expenses and improvement expenses.

3. Importance of Rehab Cost Calculation

Details: Accurate rehab cost estimation ensures proper project budgeting, helps determine property value after renovation, and is crucial for investment analysis.

4. Using the Calculator

Tips: Enter all repair costs in USD and all improvement costs in USD. The calculator will sum them to provide the total rehab cost.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between repairs and improvements?
A: Repairs fix existing issues (like leaks or broken systems), while improvements upgrade or add features (like new flooring or appliances).

Q2: Should I include labor costs?
A: Yes, include all labor costs associated with both repairs and improvements in their respective categories.

Q3: How detailed should my cost estimates be?
A: The more detailed your inputs, the more accurate your total rehab cost will be. Break down costs by category when possible.

Q4: Does this include permit fees?
A: Permit fees should typically be included in either repair or improvement costs, depending on which work they apply to.

Q5: Should I include contingency costs?
A: This calculator shows base costs only. Consider adding 10-20% contingency to the total for unexpected expenses.