You've chosen a great place to learn.

Has your wife chosen a brokerage firm?

Locals are the only ones who truly know an area other than remote investors that have a lot of experience with their chosen areas. 

Once he has the average cost per category for the 5 categories he's chosen, he'll compare each local category cost to the national average (which I believe he's getting from home advisor possibly a more in-depth service).4) He takes the difference between the local average and the national average, and then averages the difference.

You may have chosen the wrong niche in real estate, fix and flip, especially if you are a full time employee with a family.  

Most of us know what we don't want, very few know what we DO want.I think you need to select a specific niche to start, concentrate and learn as much as possible, and then begin to develop an investment plan.For instance, I have chosen Multifamily apartments (niche).  

Furniture cloths valuables etc) up to a value chosen by you or your agent.

Knowledge of your chosen market and the locations you choose the better you will be and the more money you will make.  

However, I have chosen to reject this line of thinking and am focusing on instead how to make this a reality.

Your chosen market and the locations are very important.