What Is Rehab Contractor?
A rehab contractor understands investor timelines, draw schedules, and scope of work. They bid clearly, work to milestones, and deliver on schedule. Unlike general contractors, they're used to building codes, permits, and the pace of flips. Finding a reliable rehab contractor is one of the highest-leverage decisions for a flipper.
A rehab contractor is a contractor who specializes in fix-and-flip and renovation projects—often working on scope of work, draw schedules, and investor timelines.
At a Glance
- What it is: Contractor specializing in fix-and-flip and renovation projects
- Why it matters: Timeline and quality directly affect flip profit
- Key detail: Understands draw schedules, permits, investor pace
- Related: Contractor, contractor bid, scope of work
- Watch for: Verify licenses, references, and past flip experience
How It Works
Specialization. Rehab contractors work on flips regularly. They understand draw schedules, scope of work, and the need for speed. They often have subs (electricians, plumbers) on speed dial.
Bidding. They provide contractor bids on your scope of work. Line-item or lump sum. Timeline included. References available.
Execution. They pull permits, manage subs, hit milestones, and complete punch lists. They know building codes and inspection requirements.
Relationship. Repeat investors often have a go-to rehab contractor. Volume gets priority and sometimes better pricing.
Real-World Example
David Kim has flipped 12 properties in Denver. His rehab contractor, Mike, has done 9 of them. Mike knows David's scope of work style, draw schedule requirements, and quality expectations.
David finds a 1,400 sq ft deal. He sends Mike the scope of work. Mike bids $52K, 12 weeks. David knows Mike hits his timelines—past 3 projects were on time or early. He accepts.
Mike starts the following week. Draw 1 (demolition, rough-in) passes in 2 weeks. Draw 2 (mechanicals) in 5 weeks. Draw 3 (finishes) in 10 weeks. Punch list done week 12. David lists week 13. The relationship and experience paid off—no surprises, on budget, on time.
Pros & Cons
- Understands investor needs and timelines
- Familiar with draw schedules and building codes
- Often has reliable subs
- Repeat work builds trust and efficiency
- Good rehab contractors are in demand; may be busy
- Pricing may be higher than general contractors
- Not all contractors who do rehabs are true specialists
- Relationship dependency—if they're unavailable, you need backup
Watch Out
- Verification: Check license, insurance, references, and past flip projects
- Availability: Top rehab contractors book out; plan ahead
- Backup: Have a second rehab contractor for when primary is unavailable
Ask an Investor
The Takeaway
A rehab contractor is a key partner. They understand scope of work, draw schedules, and the pace of flips. Find one through referrals, verify their work, and build the relationship. Your flip profit depends on it.