Long Island Fix and Flip Construction Costs 2025
After funding a steady stream of fix and flip projects across Long Island, I've seen renovation budgets that work and plenty that don't. Nassau County's median price sits at $840,000 while Suffolk County runs $690,000. Those numbers tell you why getting your construction costs RIGHT matters more than ever.
Yesterday, an experienced investor contacted my office with a property in Huntington. Great bones, solid neighborhood, but his renovation budget showed $35 per square foot. I had to deliver the hard truth. Those numbers haven't existed since 2020.
Let me share what construction actually costs in our market today. Not what you'll find on generic real estate blogs, but real numbers from real projects I'm funding right now.
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Current Construction Costs by Project Type
Living and investing in this market for over 50 years, I've seen every cycle. Right now, construction costs vary dramatically based on the level of work. Here's what I'm seeing across the deals we're funding:
Light Cosmetic Rehab: $25-45 per square foot
Paint, flooring, basic fixture updates, landscaping cleanup. This is your bread and butter flip when you find a dated but structurally sound property.
Standard Full Rehab: $70-80 per square foot
New kitchen, updated bathrooms, flooring throughout, electrical updates, HVAC service. This represents most of the deals I fund.
High-End Renovation: $125-175+ per square foot
Complete gut renovation, structural changes, additions, premium finishes. These projects are happening more frequently as we see properties crossing that million-dollar mark.
A 2,000 square foot home needing a standard rehab? You're looking at $140,000 to $160,000. That's reality in Nassau and Suffolk counties today.
Room-by-Room Breakdown
When investors send me their scope of work, I immediately check their room-by-room estimates. Here's what I'm ACTUALLY seeing contractors charge:
Kitchen Renovations
Basic update with stock cabinets and granite: $14,000-22,000
Mid-range with semi-custom cabinets and quartz: $25,000-39,000
High-end with custom everything: $50,000+
That $12,000 kitchen renovation you saw on HGTV? Not happening on Long Island. Not even close.
Bathroom Renovations
Hall bathroom basic update: $5,000-9,000
Full bathroom gut and rebuild: $10,000-17,000
Primary bathroom with high-end finishes: $25,000+
Other Common Costs
New roof (typical 2,000 sq ft home): $15,000-25,000
HVAC system replacement: $12,000-18,000
Electrical panel upgrade: $3,500-5,000
New windows (whole house): $15,000-30,000
Exterior siding: $20,000-40,000
Driveway replacement: $6,000-14,000
These aren't numbers from online calculators. These are from actual invoices crossing my desk.
The Hidden Costs That Kill Deals
Here's what investors consistently miss when calculating their flip profits. I see it happen weekly, and it's painful to watch a good deal turn bad because someone forgot these costs:
Carrying Costs: Interest payments, insurance, utilities, property taxes. On a $600,000 purchase with my funding at 10% plus, you're looking at $6,000+ monthly. A six-month project? That's $36,000 in carrying costs alone.
Transaction Costs: Two sets of closing costs, realtor commissions, transfer taxes. Budget 8-10% of your sale price just for the exit.
Surprise Discoveries: Asbestos, mold, foundation issues, unpermitted work. I've seen $50,000 budgets balloon to $100,000 after opening walls.
Last week, an investor discovered knob and tube wiring in a Levittown property. The entire rewiring added $18,000 to his budget. These surprises are why your construction budget needs serious padding.
Why Your Budget Needs a 20% Buffer
Building a buffer into your construction budget isn't optional. It's survival. The investors who successfully complete projects and come back for more funding? They ALL build in cushion.
Take that $150,000 renovation budget. Add 20% and you're at $180,000. That extra $30,000 isn't pessimism. It's insurance against the realities of construction in our market.
Contractors run late. Materials cost more than quoted. Inspectors find problems. Permits take longer. This is the nature of construction, especially in Nassau and Suffolk counties where the permit process can be extraordinarily tedious.
When investors come to me with tight budgets and no buffer, I challenge them hard. Have you thought about delays? What if your contractor gets pulled to another job? What happens when that special-order vanity takes 12 weeks instead of 4?
Contractor Reality Check
Good contractors are booked solid. The ones available immediately? There's usually a reason. I've built relationships with reliable contractors over the years, and they're scheduling work 3-4 months out.
Your contractor relationship can make or break your flip. Here's what I tell every investor about managing contractors:
Get everything in writing. EVERYTHING. Scope, timeline, payment schedule, material specifications. Handshake deals end in lawsuits.
Never pay everything upfront. Structure payments tied to completed milestones. This is how our draw schedule works too. Complete the work, get the money.
Have backup contractors. When your primary guy disappears mid-project (and it happens more than you'd think), you need options. The investors who succeed have teams, not just one contractor.
Visit the job site regularly. Contractors prioritize the squeaky wheel. The investor who shows up gets their project done faster.
Permit Delays and Costs
If you're doing anything beyond cosmetic work, you need permits. In Nassau and Suffolk counties, the permit process will test your patience and your budget.
Basic permit costs run $1,500-5,000 depending on the scope. But the real cost is time. I've seen permits take 2-6 months for approval. Every month of delay is another month of carrying costs.
Smart investors hire expeditors like Captain Permit. Yes, it costs extra. But getting your permits in weeks instead of months? That savings in carrying costs pays for the expeditor twice over.
Factor permit delays into your timeline from day one. If you're planning a 4-month renovation, budget for 6 months. The market's strong enough to absorb these longer timelines, but only if you plan for them.
Finding Your Profit Sweet Spot
The sweet spot in our market right now? Properties in that $500,000 to $600,000 purchase range that need $100,000 to $200,000 in work and sell for $900,000+. Nice house, nice neighborhood, quarter million in profit.
This isn't where newer investors should start. But for those with some experience, these higher-end flips offer the best margins. The market's quickly moving toward that million-dollar mark, especially in towns like Garden City, Manhasset, and the Hamptons.
I'm funding more of these deals every month. The construction costs are higher, sure. Premium finishes, architectural details, landscaping that makes people stop and stare. But the profit margins justify the extra expense.
One recent project in Huntington: $550,000 purchase, $200,000 renovation, sold for $1,050,000. After all costs, the investor netted over $200,000. Those are the deals worth chasing.
Getting Your Project Funded
When you're ready to move on a property, construction costs become real fast. You need funding lined up before making offers. This is where preparation separates funded deals from missed opportunities.
Come to me with a real contractor's estimate, not back-of-napkin math. Show me comps from a reliable source supporting your ARV. Have your scope of work detailed down to the doorknobs.
The investors I fund successfully understand this is a business. They have their Excel analysis ready. They've driven the neighborhood. They know their numbers cold.
For newer investors, we offer something most lenders don't. Our newer investor funding program provides mentoring alongside capital. You get a co-pilot, not just a lender. We'll review your construction budget, challenge your assumptions, and help you build your team.
Making Your First Move
Stop waiting for construction costs to come down. They won't. Stop hoping interest rates will drop dramatically. Focus on what you can control: finding good deals, building solid budgets, and moving fast when opportunity appears.
Schedule time with me to review your deal. Bring your construction estimates, your comps, your contract. Let's determine if the numbers work. Sometimes they don't, and I'll tell you straight. But when they do? We can fund in days, not weeks.
The Long Island market remains incredibly strong. Properties are selling. Demand stays high. But success requires realistic construction budgets, proper planning, and fast execution when you find the right property.
August 2025 finds our market on fire. There's profit in these flips, but only for investors who understand true construction costs. The days of winging it with optimistic budgets are over. Plan for reality, build in buffers, and work with local funding sources who know this market inside and out.
Your next successful flip starts with accurate construction costs. Get those right, and everything else falls into place. Get them wrong, and even the best property becomes a money pit.
Ready to run your numbers by someone who's seen it all? Apply for funding here and let's determine if your next project makes sense. Real numbers, real funding, real profits. That's how we do business on Long Island.