If you're passing along cleaning fees to the guests, then they shouldn't have such a material impact on your profits.I'm speaking from experience a little bit.

I’m a real estate pro so material participation isn’t an issue, but the majority of my clients are in the $300k-$900k/yr gross household income range and so using STRs is not only the best way to get great ROI on real estate nowadays but the tax benefits are the primary driver for most including myself.  

I had to replace the fences after a strong storm last year, which costed $4200 in materials and labor.

Total cost materials only was approx 50k, that's 10+ years ago.

I’m still figuring out where opportunities are / will be and consume a wide variety of materials.

An approach you might want to take, is to break down each component of the rehab into its own price per sqft/linear foot/units for both materials and for labor.for example you might find that flooring costs and average of $3.50/sqft labor to install + $3.00/sqft for materials X square feet = cost to refloor+ always add an extra 10% for unforseensSo you would just need to do this for every part of the rehab based on what needs to be done and what level of finish you are going for.keep in mind that some things are measured by sqft, like floor, and others are measured by linear foot, like trim, and some are measured by total area, like drywall and paint, and yet others are measured per each like tubs and toilets.A good place to start with figuring costs is The Book On Estimating Rehab Costs by J.

Also, who is disposing of materials?  

Day of the install after all the material is off the roof you’re asked for more money due to lack of material, i.e. compromised wood that was not inspected when it should have been.Just like a mechanic, you probably wouldn’t trust him if he told you you needed a new transmission but never popped the hood. 

There's a misconception that builders are price gouging, but in reality, the price of a home is directly tied to the cost of building it.When material or financing costs go up, home prices follow.

Looking for advice - purchased first STR 2023 and we qualify for active income based on rule 3 of the material participation test.