Regardless of how real estate -ish we are here, there is a huuuuge technology component here, too.

The categories match up pretty well with the 25 components I call out in my Estimating Rehabs books.Btw, this is the way my accountant recommended I set up QB...he's the one who moves everything to WIP at the end of the year for the properties that haven't yet sold. 

All of the components of construction, I left off land.  

Another lesson I learned was to have a more concrete scope of work to help create a more accurate budget and to add a buffer in the plan for things that come up that are unexpected.

misc also includes unexpected charges such as water charge associated with a leak such as a slab leak.In addition, at this rent point you will find it difficult to get a PM at 10% all inclusive (including tenant placement, inspections, lease renewals, etc).  

They are often classified as operating expenses or maintenance expenses rather than capital improvements (assets).Washer/Dryer/Stove/Refrigerator: These are assets as they are considered durable goods that will benefit the property over an extended period.New Baseboards/Trim, Doors: These are generally considered assets because they enhance the property's value and are not typically replaced frequently.Furnace/AC: These are significant components of the property and are categorized as assets due to their long-term benefit.Paint, Light Fixtures: These can be a bit nuanced.

There is no telling what repairs or unexpected expenses will come up.

I was just into about my 20th new build in a 90 home project when this happened to us.. lumber packages did not quite 3X but they certianly went up 2X along with a host of other components.. the one benefit we had was we could have lumber escalation clauses in our contracts that passed this on to the buyer..

Terms should include interest rates, repayment schedules, and contingencies for unexpected issues.

They can buy property any way they want, including with cash, but the low interest rate mortgage on their reasonably lightly levered acquisition is an attractive component of the deal.