Hello BP Nation,For a small (8 homes) luxury development, would a fair ballpark percentage for soft costs be 18%?

. $867,000Construction of a 4BR 2.5BA 3,000 SF home will run $750k ($250/SF)Breakout of $750k construction is as follows:$100k - soft costs (architect, permits, etc)$400k - Contractor - shell only$200k - finishes$50k - landscapingAll in costs pre-financing $1,617,000FinancingLocal Private bank will finance 60% of as complete value ($2MM) -or- 80% of total project cost.Loan of $1.2MM at 5.5% + 1% loan fee.Financing cost over 12 months $50kRequired skin in game (down payment) - $417kPost Construction Sale $2MM(less) $1.617 Acquisition/construction costs(less) $50k financing(less) $100k sales commission @5%equals $233k pre-tax profitCash-on-Cash Return = 56%After tax profit = $150kAssuming 35% income tax / Total ROI = 36%Would you do this deal?

I'd choose a soft sandy color, in a flat or satin finish, which will make it even less noticeable that you've painted over the wallpaper.

Sounds to me like you may be trying to put a square peg in a smaller round hole trying to adapt leads to a strategy, that is bass ackwards, you look at the property, the circumstances, the goals of the owner and then select the best strategy to get the owner's problem solved.

It appears that the portion of the increase in prices directly attributable to the hard and soft costs (materials, labor, time, capital, etc) of improving the property are the approximate amount that the indeces are being "inflated" relative to the circumstances of the average, non-rehabbing homeowner.To demonstrate this, let's say I buy a beat-up rehab in an upward market for $200K, put in $75K in all costs, including capital costs, materials, labor, and sell it for $350K net proceeds.

Even if the fireplace checks out during an inspection, unintentional damage can occur if the tenant used unseasoned wood, soft woods, etc.

So, by the time we get to the rental income the core basses of our analysis, it’s from a very conservative approach.

It is way past time that I introduce myself here in the forums, but now that I'm here, I look forward to meeting people, and learning even more as I go along.I am a professional musician, bass player, and singer, and currently perform in a variety of groups and ensembles.

Pat, There are "soft" inspectors in my area as well that some agents prefer.

You want to be understanding but not "soft".