The rehabbing definition is when an investor renovates a property with the intention of improving it. Rehabbing can be approached in a number of ways, but are most often purchased at a discounted price and renovated with the intention to resell. This process is also known as house flipping. As a real estate investing exit strategy, rehabbing can lead to high-profit margins. Rehabbing can also include property owners who renovate their homes for personal use or to increase property value.