Frame and finish a L shaped wall in the current recreation room wall approx 7' long x ~18" deep.B.Remove door to "office" and open wall to frame out closet, or just close off.C.Remove wall separating bedroom and office (wall is ~7.9 long)D, F, G Close off 3 interior doorsE.

Why would you give them free rent with they still have full access and use to the stove, refrigerator, walls, closets, flooring, roof, garage, lawn, etc.?

Do the closets have nice organization storage?

Also finished the basement which had a good amount of space, adding two bedrooms and moving the laundry to a closet upstairs where it made more sense.

At my ski resort Airbnbs, we have portables.  

I would do an average size home for about $300.If this is for a municipality, it will need to be a to-scale, flat 2D drawing for their filing purposes that includes every room - down to each closet.

But if there is ample room in the bedroom and you can take a single sink to double vanity, or add a dedicated water closet, or take a 3x3 shower into a 3x5 or larger, making the bathroom more luxurious, than I could see a good ROI on that.While the area may be very nice, the price point you are talking (and I don't know the specific market) is borderline starter home prices.  

I have portable AC units or will offer to put tenants up in a hotel if their AC goes out in the Summer. 

I would buy and keep in reserve one of the portable units on wheels...

I am building a vertical addition above the existing main level which would have vaulted ceilings OR alternatively the front half would be vaulted and rear where the bath/closet is situated would have flat ceilings with rooftop deck above.