Last updated: December 2025
Quick answer
To estimate renovation costs per unit for 10–30-unit buildings, break your budget into hard and soft costs, define the scope of work, and use a per-unit or per-square-foot cost model based on similar projects.
Most value-add renovations range from $15K–$65K per unit, depending on location and depth of rehab.
Whether you’re upgrading an aging 20-unit building or repositioning a 10-plex to attract higher rents, accurately estimating renovation costs per unit is essential to planning and profitability.
Misjudging your costs
A miscalculated budget can derail your timeline, eat into returns, or stall your loan funding.
But with a clear process, market knowledge, and support from experienced private lenders, you can build a per-unit renovation estimate that makes sense and helps you secure the financing you need.
This article walks you through how to estimate apartment renovation costs effectively for 10–30 unit buildings, so you can confidently underwrite your next value-add investment.
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Why accurate per-unit cost estimation matters
In small to mid-sized multifamily projects, the cost per unit becomes one of the most important numbers in your deal analysis. It affects:
- Your total CapEx (capital expenditures)
- Loan size and loan-to-cost (LTC) ratio
- After-repair value (ARV) projections
- Your timeline for rent increases and return on investment (ROI)
- Draw schedules and funding releases
Private lenders like Marquee Funding Group often base renovation loans on ARV, but they still want to see realistic, well-organized budgets that support your numbers.
What factors affect renovation costs per unit?
Per-unit rehab costs can vary significantly depending on several key factors:
1. Scope of work
- Light rehab: Paint, flooring, fixtures – typically $15K–$25K per unit
- Moderate rehab: Kitchen/bath updates, appliances, windows – $25K–$45K per unit
- Heavy rehab: Gut renovations, systems replacement – $45K–$65K+ per unit
2. Age and condition of building
Older properties may require updates to electrical, plumbing, HVAC, roofing, or structural elements, which can significantly increase costs.
3. Unit size and layout
Larger units or custom layouts will drive up costs. Smaller studio or 1-bedroom units are generally cheaper to renovate than 3-bedroom units.
4. Location and labor market
Renovation costs in Los Angeles, New York, or San Francisco are much higher than in secondary or tertiary markets due to higher labor, permitting, and material costs.
5. Finish level
Are you upgrading for market-rate renters or targeting luxury tenants? High-end finishes and design features can add $10K+ per unit.
How to structure your renovation estimate
To get an accurate per-unit cost, follow these steps:
Step 1: Define your scope of work (SOW)
Break it down by:
- Interior upgrades (kitchens, bathrooms, flooring, paint)
- Exterior improvements (roof, siding, windows, landscaping)
- Systems (HVAC, plumbing, electrical)
- Common areas (hallways, laundry rooms, amenities)
- Code compliance or accessibility improvements
This scope-first approach mirrors practices used in multifamily Capital Needs Assessment (CNA) reporting, where physical condition and future repair needs are systematically inventoried to support renovation budgeting and financing assumptions.
Step 2: Request contractor bids or use market benchmarks
Even early in the process, general contractors can offer rough pricing based on square footage or project type. If contractor bids are unavailable, use typical pricing ranges for similar properties. For additional context on materials cost volatility, refer to the construction materials input price index, which tracks changes in prices of goods and components that influence renovation budgets.
| Rehab type | Cost per unit (approximate) |
| Cosmetic/light | $15K–$25K |
| Mid-level upgrade | $25K–$45K |
| Full gut rehab | $45K–$65K+ |
Step 3: Account for soft costs and contingency
Add the following to your base estimate:
- Permits
- Architect/engineering fees
- Design fees
- Contingency buffer (10%–15%) for unexpected issues
Step 4: Calculate total and per-unit cost
If your total renovation budget is $1.2M on a 24-unit building:
- $1,200,000 ÷ 24 units = $50,000 per unit
Use this number in your pro forma and share it with lenders to support loan requests.
Should you renovate all units at once?
For smaller buildings, full vacancy during renovation is common. But for 20–30 unit buildings, consider a phased renovation:
- Renovate 4–5 units at a time
- Lease-up upgraded units at higher rents
- Use cash flow to support the next phase
- This approach reduces vacancy loss and spreads risk
Marquee can accommodate phased funding with custom draw schedules tied to your unit-by-unit strategy.
How private lenders use your cost estimates
Private lenders like Marquee Funding Group don’t expect perfection, but they do require transparency.
Here’s how your renovation estimate is used:
- To verify that the loan request matches the project size
- To validate ARV projections based on the renovation scope
- To structure draw schedules and interest reserves
- To ensure you can complete the project within the loan term
Detailed, credible estimates increase your chances of same-day approvals and fast funding.
Tips to improve your renovation budgeting
- Walk the property with a contractor before closing
- Use a standardized budget template (many are available for free)
- Factor in local materials and labor cost volatility
- Get multiple bids if possible
- Always include a contingency
- Include unit counts and per item costs for clarity
Build smarter budgets, unlock better deals
Estimating renovation costs per unit is part art, part science, but when done right, it gives you the confidence and leverage to take on larger, more profitable projects.
At Marquee Funding Group, we help experienced investors like you finance multifamily renovations from $3M–$10M+, with tailored loans and draw schedules that match your project’s scope.
Bring your plan, budget, and vision. We’ll bring the capital to make it real.
Ready to finance your next multi-unit renovation project? If your entity has completed 3 or more projects, Marquee Funding Group can help. Get started with Marquee Funding Group today.
Frequently asked questions: Estimate renovation costs per unit
For value-add multifamily projects, budget $25K–$35K per unit for moderate upgrades and $45K+ for full renovations, depending on market and scope.
Not always, but providing bids or a detailed scope of work can speed up the approval process and strengthen your loan application.
Yes. Marquee Funding Group structures renovation loans to cover both acquisition and rehab, often based on ARV rather than current value.
Include a contingency buffer upfront. If additional funding is needed and the project still supports the value, lenders may consider a loan modification as long as the project remains financially viable.
No. You can renovate in phases. Many investors upgrade a portion of units to raise rents and prove out the business plan before completing the rest.