I built the cost into the management fee of my next acquisition that I currently have under contract.

Developing a new major brand limited service (Hampton Inn for example) would run about 14 million in construction costs.  

I found the renovations to be cost more and the ARV to be less (the agent or wholesaler will sometimes give you a higher ARV). 7) Get a full inspection and sewer line scope. 8) Have lots of cash reserves. 

It's an easier, less costly way for Homeowners to use their equity -- not just borrow against it.My experience: real estate law, finance and development. 

And cut spending where I can!

I did my closing just 45 days ago and also paid additional to bring the interest down, doing another loan means closing costs again.

High construction costs and interest rates?  

You'll quickly learn that many investors who acquire deals in Atlanta implement a rent-by-the-room/co-living strategy.

This is really a great short-cut to analyzing deals, because I can easily look at the ARV spread (which you should seldom trust, by the way) and see if it is even feasible to make how much I want to make.  

We pretty much all use "the lesser of" Cost or ARV (As Reparied Value) as the value we use for lending.