Snap level line 36.5" down from ceiling. Then go find the high and low spot of the ceiling and floor. (I added half inch assuming a 1/4 inch grout line. adjust as you see fit) Next, measure down to floor to see what you will have for cut tile, again adding the 1/4 inch between tiles. Then the question is if you are going to have a baseboard in either tile or wood? Usually I see the cut at the floor.
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