“Light rehab” is one of those phrases I would never take at face value. It usually means cosmetic work on the surface, but the profit risk is in the systems you cannot see or the items nobody included in the quick walk-through.
I would underwrite light rehab in two layers. Layer one is the obvious cosmetic scope: paint, flooring, fixtures, counters, appliances, minor drywall, landscaping, and punch work. Layer two is the risk checklist: roof age, HVAC age, panel capacity, plumbing material, sewer, windows, drainage, foundation, water intrusion, mold, permits, and layout/code issues.
If layer two has unknowns, the deal needs contingency or a lower offer. I do not like using the cosmetic number as the rehab budget unless the major systems are verified. A $25K “light rehab” can become a $70K rehab fast if roof, HVAC, electrical, or sewer shows up after closing.
The other trap is timeline. Even if the extra work is manageable, hidden scope can add weeks of holding costs and push the resale into a different market window.
For me, a light rehab is only truly light when the inspection confirms the systems, the comps support a simple finish level, and the budget includes a real contingency for surprises.