Build for durability, not design trends.LVP looks great until water gets under it.Custom tile showers look great until they crack.We use materials that can take abuse:• Porcelain tile• Durable tubs• Standard vanities• Simple trimIt’s not glamorous.

I usually charge 10% and I include material into the charges if I do that for other people. 

We already used it to calculate material costs for a rehab.

Most of the "guts" of appliances have barely changed in the last 40 years (other than materials going from metals to plastics) - it's almost always the "features" that go bad in appliances.

This insures that the contractor is not just throwing random # s in their estimate and is accounting for all labor, materials, etc.All the best!

My suggestions for anyone reading this….Before signing a rehab contract: get at least 3 bids, check that each includes detailed line items (materials + labor + markup).Set up the draw schedule: only release payment after verifying completed milestone.Have a worst-case scenario worked out: what if rehab takes 2× time, what if lease-up is slower, what if refinance drops?

Everything depends on so many variables that change on a somewhat regular basis - timing of the year, contractors, availability of good contractors (hopefully personally doing good & not increased costs), availability of inventory (good deals), financing, increased cost of materials/labor, etc. 

The materially participating rule is about STR, your LTR deductions are not affected by how much you participate. 2) Remember, you aren’t creating new deductions, you are simply pulling them forward.

Rehab is always tracked as its own cost centerLabor, materials, subcontractors, permits, all separate line items.

A short term rental lets you use cost segregation and bonus depreciation against your W2 income if you materially participate.