Categorizing Your Rehabs: The First Step to a Scalable Construction Business

Rehabbing can feel chaotic.

Every property is different. Every scope of work is custom. And just when you think you’ve got your process dialed in, the next project throws you a curveball.

That’s why so many rehabbers say the business feels unscalable. But what if the chaos isn’t a given? What if part of the confusion comes from treating every project like it’s entirely unique — when really, most fall into a handful of repeatable categories?

One of the most powerful things you can do as a builder is to start classifying your projects by type.

Doing this allows you to:

• Name and isolate the key differences between jobs
• Identify the unique flow of each project type (its “critical path”)
• Build project templates for scopes, budgets, and schedules
• Stop reinventing the wheel every time a new deal comes in

In short: categorizing your rehabs is a simple but strategic way to reduce complexity, increase confidence, and lay the groundwork for a more scalable business.

The Three Main Types of Rehabs

There’s no one-size-fits-all way to categorize your projects — and that’s the point. You can define your own categories based on the types of rehabs you take on most often. The key is simply to start identifying and naming them. 

That said, a helpful starting point for most builders is to think about rehabs in three general tiers, organized from smallest to largest in terms of scope, complexity, and required coordination.

1. Cosmetic Renovation

This is the most straightforward type of project. It involves no framing changes or MEP (Mechanical, Electrical, Plumbing) work, and the goal is to refresh the property’s finishes.

These jobs could include:

• Interior and exterior paint
• Replacing siding, windows, and doors
• Installing new cabinets, fixtures, or flooring
• Updating other visible finishes without altering the layout

Cosmetic rehabs are faster, more predictable, and great for building systems around repeat work.

2. Heavy Renovation

Heavy rehabs go a step further. They involve structural changes and/or rough MEP work, which usually requires permits and deeper coordination.

These jobs often include:

• Moving or altering walls (e.g., installing an LVL beam)
• Updating or relocating electrical, plumbing, or HVAC systems
• Replacing drywall, adding insulation, and addressing behind-the-wall upgrades

This is where your project management muscle gets tested. Permits, inspections, and sequencing become more important — and having a clear process is essential.

3. Gut Renovation

The most intensive rehab. A gut renovation means the home is taken down to the studs. All systems are replaced, and layout changes are typically extensive.

This scope includes:

• Full interior demolition
• New framing, insulation, MEPs, and drywall
• Reimagining and rebuilding the entire interior layout

These are high-stakes projects with lots of moving parts. Without a plan and process, they can eat up your time — fast. That’s why templates and pre-built scopes are critical here.

Don’t Forget the Add-Ons

Some projects start in one category (like a gut renovation) but include extra elements that change the game. These “add-ons” can dramatically impact your budget, schedule, and project planning — and they should be categorized separately when building your templates.

Common add-ons include:

• 🏠 Ground-Up Addition – Adding entirely new square footage to the property
• 🏡 Basement or Attic Conversion – Turning unused space into livable area
• 🏗 Pop-Top or Second-Story Addition – Building a new floor above the existing structure

A “Gut Renovation with Addition” is a different animal than a standard gut job. And recognizing that difference early helps you plan better and avoid missed line items or timeline assumptions.

How to Use This Framework in Your Business

Once you’ve categorized your project types, you can start building the systems that make your business scalable.

Here’s how to put this into action: 

✔ Define your common project types – Which ones do you do most often?
✔ Start with templates – Use TRP’s pre-built templates or your own past projects as a starting point
✔ Refine over time – Tweak your templates as you complete jobs and learn what works best
✔ Organize your resources – Create checklists, budgeting tools, and critical paths for each type

The goal is to stop starting from scratch and start working from systems.

Final Thoughts

Categorizing your rehabs isn’t just about semantics — it’s about structure. It’s the first step in turning a chaotic, project-by-project hustle into a business that runs with clarity and repeatability.

Every efficient system you build will start here: with a clear understanding of what kind of project you’re running.

So take the time to define your project types. Build out your templates. And watch how much smoother, faster, and more scalable your business becomes.