Fix and Flip Budget Template: A Line-Item Rehab Budget That Holds Up

Why does a line-item budget matter?

A single lump sum ("rehab: $55,000") is the most common reason a lender asks more questions. Three reasons to itemize.

1. Lender review. Axelrad's FAQ lists the rehab budget as one of five documents needed for hard terms. A reviewer compares it with the photos, the scope, and the ARV.
2. Draws. Rehab funds are usually released in stages as work is completed. Draws track budget lines, so a vague budget makes for slow draws.
3. Your margin. You cannot manage what you didn't itemize.

Fix and flip budget template

Example (hypothetical numbers) for a 3 bed / 2 bath, 1,400 sq ft cosmetic-plus rehab. Enter your own bids in the fill-in budget further down.

How much contingency should a flip budget include?

There is no single right percentage. Investors often use around 10% for cosmetic work with firm bids and more for older homes, structural work, or anything behind walls you haven't opened. The live Axelrad guide on cash to close and rehab draws makes the key point: a contingency only helps if it is cash you can actually reach, not hoped-for profit at sale.

What belongs in the rehab budget vs. holding costs?

Keep them apart. The rehab budget covers work on the property. Holding costs (interest, taxes, insurance, utilities, lawn care) belong in a separate holding cost sheet, and selling costs in a separate exit sheet. Mixing them hides problems: a budget that looks fine can be quietly absorbing three extra months of interest.

Budget review checklist before you submit

Before you send the budget to a lender or contractor, confirm each of these is true.

How do you keep the budget honest during the job?

Track actual against budget weekly. Add three columns to the template: committed (signed contracts), paid, and variance. When a line runs over, decide right away where the money comes from: contingency, a scope cut, or your own cash. Change orders should be in writing and priced before work starts. Tell your lender about meaningful budget changes before you need a draw that depends on them.

How do you share the budget with your lender?

Send it as a clean, itemized document with the bids attached, the totals matching your application, and the contingency shown on its own line. If your contractor's bid is organized differently from your budget, map each bid line to a budget line so the reviewer doesn't have to. That one step makes draw requests faster later too.

Blank template fields

Total rehab budget = sum of your line items + contingency (contingency % x subtotal). Enter your own bids by line in the calculator below and it adds the subtotal, contingency and total. Then record the property details under it.

Which costs do new flippers forget most often?

These are the lines commonly missing from first budgets:

• Permits and inspections for electrical, plumbing, HVAC, or structural work
• Dumpsters and haul-off, often more than one
• Utility turn-on and deposits before work can start
• Appliances, which are often treated as an afterthought
• Punch list and final clean, the last-week items that delay listing
• Lockbox, security, and winterization if the house sits empty in cold months
• Code-driven upgrades that come up once walls are opened, such as smoke detectors, GFCI outlets, or handrails

Whether a specific upgrade is required depends on your local code and permit office, so confirm with your contractor and the local building department. Put a line in the budget for each one, even if the number is small.

Key takeaways

• Itemize by trade and tie each line to a bid.
• Keep contingency, holding costs, and selling costs separate from the rehab lines.
• Match the finish level to your ARV comps.
• Track committed, paid, and variance during the job.

Ready to submit?

Attach your line-item budget when you submit your deal, and see current program criteria on the fix-and-flip loan page.