Everyone asks me what I spend on a rehab. Here's a real $40K breakdown on a typical Memphis single-family — buy under $100K, ARV $180K–$265K:

Roof — $6,500. If it leaks, nothing else matters. I price a full tear-off, not patching.

HVAC — $5,000. New system, sized right. A dying compressor will kill your first summer.

Flooring — $5,500. LVP throughout. Looks clean, tenants can't destroy it, cheap to replace a section.

Kitchen — $5,000. Stock cabinets, laminate or quartz-looking counters, stainless package. No $15K kitchens on a rental.

Bathrooms — $4,000. One full redo: tub, surround, vanity, toilet, tile floor.

Electrical — $2,500. Panel upgrade if needed, outlets, switches, GFCI. Section 8 inspectors check these.

Plumbing — $2,500. Water heater, fixtures, supply line repairs. Old galvanized gets replaced, no debate.

Windows — $3,000. Roughly 10 vinyl replacements. Energy costs eat you alive with single panes.

Interior paint — $2,500. Whole house, two colors max. Same paint on every house I own.

Exterior/cleanup — $2,000. Exterior paint touch-up, landscaping, debris haul-off. Curb appeal is real.

Permits/dumpsters/misc — $1,500. The stuff nobody budgets for and everybody needs.

Total: $40,000. The rule that keeps me out of trouble: line-item the budget BEFORE I close, and if a walkthrough can't be rehabbed for the number my offer assumed, I renegotiate or walk.

What's the line item that always runs over budget on YOUR rehabs?