The rate that you pay to process a credit card transaction is a combination of base costs and markups called merchant discount. Think of merchant discount as the retail price of credit card processing, base costs as raw material expenses and the markup as production costs.
I divided the rehab cost by the square footage and came up with a cost per square foot for each home. The rehab ranged from 7-15 dollars per sqft for an average of $12 per sqft. For example a 1000 sqft home should cost around $12,000 on average to do a cosmetic rehab.
Applying this methodology to a convenience sample of more than 200 affordable multifamily rental. properties, and adjusting for other factors that might influence costs, we found that the lifecycle costs of. new construction were approximately $40,000 to $71,000 (25 to 45 percent) higher per unit than those. of acquisition-rehab properties.