A second home you just bought, a rental, an inherited house, or one of twenty you own: an old house with a set budget always asks the same question. Where does the money go first? Spend it in the wrong order and the budget runs out with half the house done twice. Spend it in the right order and every phase protects the one before it.
This guide walks through how experienced contractors plan an old-house renovation on a budget: what to look for before you spend anything, how to split the money into phases you can pause between, what is worth keeping, how to stretch the budget without cutting corners, and how to hire for the whole plan.
Know what kind of old house you have
The year a house was built tells you a lot about what is inside the walls. These are the things pros look for first, by age:
| If the house was built | Look for |
|---|---|
| Before about 1950 | Knob-and-tube wiring, fuse boxes, plaster walls, cast iron or clay drain lines, little or no insulation |
| Before the 1960s | Galvanized steel water pipes that rust inside and lose water pressure |
| Mid-1960s to mid-1970s | Aluminum branch wiring in some homes |
| Before 1978 | Lead-based paint under newer layers |
| Before the 1980s | Asbestos in some floor tiles, pipe insulation, siding and textured ceilings |
| About 1978 to 1995 | Gray polybutylene water pipes in some homes |
None of these means the house is a bad buy. They are simply the most common budget items in older homes, and knowing about them up front is what keeps a budget honest.
1. Walk it with a pro before you spend anything
Old houses keep their biggest problems out of sight. Before you choose a single finish, walk the whole house with an experienced contractor or home inspector and look at:
- The roof, the attic and any signs of old leaks
- The foundation, the crawl space or basement, and how water drains away from the house
- The electrical panel and the wiring
- Plumbing: supply pipes, drain lines and the water heater
- Heating and cooling: age, ducts and how evenly the house heats and cools
- Windows, doors, wood rot and signs of pests
Bring in specialists where the walk-through points: an electrician for old wiring, a plumber for old pipes, a roofer, or a structural engineer if floors slope or the foundation has cracks.
2. Make three lists: fix now, fix soon, nice to have
Ask your pro to sort everything they find into three lists. That sorting is the heart of a renovation budget.
| List | What goes on it | Examples |
|---|---|---|
| Fix now | Safety, water and anything getting worse | Roof leaks, unsafe wiring, active plumbing leaks, foundation drainage |
| Fix soon | Systems at the end of their life | Old water heater, aging heating and cooling, galvanized pipes, drafty attic |
| Nice to have | Comfort and looks | New kitchen layout, tile, new flooring, built-ins, paint colors |
3. Split the budget into phases
Pros spend an old-house budget from the inside of the problem out: safety and water first, beauty last. Each phase protects the one before it, and some phases are natural places to pause and save.
| Phase | What goes in it | Good place to pause after? |
|---|---|---|
| 0. Plan and permits | Walk-through, the three lists, the whole-house plan, permits | Yes |
| 1. Safe and dry | Roof, leaks, foundation, drainage, unsafe wiring | Yes: the house is protected |
| 2. Systems | Plumbing, electrical, heating and cooling, while the walls are open | After inspections pass |
| 3. Walls and insulation | Insulation, drywall or plaster repair | Yes: the house is closed up again |
| 4. Kitchen and baths | Cabinets, counters, tile, fixtures | Between rooms |
| 5. Finishes | Flooring, trim, paint, lighting, curb appeal | Room by room |
Keep a cushion for what is behind the walls. Many pros suggest 10 to 20 percent of the budget, and more in a very old house. If the cushion is not used, it moves to the next phase.
4. Hire for the whole plan, not just phase one
The best results come from one written plan for the whole house, priced phase by phase. Then you can finish a phase, pause, save, and pick up right where you left off, without tearing out finished work to start the next one.
- Give every pro the same list, so the bids line up
- Ask for a price for each phase, not one total
- Ask what can safely wait between phases, and what cannot
- Ask who runs the schedule: a general contractor or a project manager
- Ask who pulls the permits and books the inspections
- Ask for photos of similar old-house jobs they have done
- Tie payments to finished stages in writing, and approve changes in writing before they are done
Many owners hire one general contractor for the whole plan. Others hire trades phase by phase and bring in a renovation project manager to keep it all in order. Either works when there is one written plan.
5. During each phase
- Walk the house every week with your pro
- Photograph every wall before it is closed: those photos show where pipes and wires run for as long as you own the house
- Protect finished work: floors covered, dust walls up
- Pay as each stage is done, not ahead of the work
- Finish each phase with a punch list
- Keep a running list for the next phase, and plan it with what you learned
How to stretch the budget without cutting corners
- Keep the layout. Moving walls, plumbing and the kitchen is where budgets grow fastest. Updating rooms where they are stretches the money furthest.
- Refinish instead of replace. Old hardwood floors, solid doors, trim and cast iron tubs can often be refinished.
- Paint or reface solid cabinets. If the boxes are sound, new doors or paint can be enough.
- Group the same work. All the plumbing at once, all the electrical at once, so each trade comes once per phase.
- Decide finishes early. Late changes are the most expensive kind.
- Seal and insulate. Attic insulation and air sealing make an old house more comfortable and cheaper to run.
- Do safe work yourself. Painting, cleanup and yard work, but leave demolition to pros in houses that may have lead paint or asbestos.
What is worth keeping in an old house
| Usually worth keeping | Usually worth replacing |
|---|---|
| Hardwood floors | Knob-and-tube wiring and fuse panels |
| Solid wood doors, trim and built-ins | Galvanized water pipes |
| Plaster walls in good shape | Failing drain and sewer lines |
| Cast iron tubs and sinks | Heating and cooling at the end of its life |
| Original windows that can be restored | Windows that are rotted or will not seal |
Permits, codes and lead-safe work
Electrical, plumbing, heating and cooling, structural changes and additions usually need permits, and renovated areas often have to meet today's code, such as outlets protected near water and working smoke and carbon monoxide alarms. In homes built before 1978, contractors who disturb painted surfaces generally need to follow lead-safe work practices, and suspected asbestos should be tested before it is disturbed. If the house is in a historic district, ask the city what needs approval before you change the outside.
Living in it, renting it, or a second home far away
- Living in it: phase the work so one bathroom and a place to cook stay usable, and plan to be away for the dustiest days.
- A second home far away: one person runs the project, weekly photo or video updates, a lockbox or smart lock, and a local contact for deliveries and inspections.
- A rental: plan the phases between tenants, and choose durable finishes that are easy to repair.
One house, two or twenty
If you own more than one house, the same rules apply, and they get easier with each house. The trick is a spec sheet: the same choices everywhere.
| On the spec sheet | Why it helps |
|---|---|
| Paint colors and sheen | Touch-ups match in every house |
| Flooring | Buy more at once, keep spare boxes for repairs |
| Cabinets and counters | Faster bids and ordering |
| Faucets, fixtures and hardware | One set of spare parts |
| Lighting | Same bulbs and fixtures to replace |
- Send the same list to every pro, so bids come back faster and line up
- Keep the crews that did good work; each house after the first goes quicker
- Track every house on one sheet: which phase it is in and what is next
- For rentals, plan the phases around move-outs so a house is never empty longer than it needs to be
Paying for it
Many owners pay phase by phase from savings, which is exactly what a phased plan is for. Others use a home equity line, a cash-out refinance, or a renovation loan that rolls the work into a mortgage, and investors often use short-term rehab loans. Talk with your lender before you start, because some loans release money in stages and need the contractor's bid and schedule.
Habits that cost old-house budgets the most
- Starting with the kitchen before the roof and the wiring are done
- Finishing a room, then opening its walls for the next phase
- No cushion for what is behind the walls
- A different contractor for every phase without one written plan
- Changing finishes in the middle of a phase
- Skipping permits, which can slow a sale or an insurance claim later
- Closing walls without photos
What to expect
Expect at least one surprise behind a wall, a few weeks between phases while you save or order, and some dust. Each finished phase makes the next one easier, and from the first phase on, the house is safe and dry.
Get old house renovation bids on BidHandyman
Post your house once with photos and your phase list, and local pros send you bids. Only pros approved by BidHandyman can bid. Compare their plans and prices by phase side by side, message the pros and hire the one you trust, with no obligation. Request renovation bids, or read whole house renovation tips, hiring a renovation project manager and do I need a general contractor.