That way you can add bedrooms, bathrooms, etc. and that adds real value.

FlooringScope of Work:Replace carpet in bedrooms with engineered hardwoodRefinish existing hardwood floors in common areasInstall durable tile in wet areas (bathrooms, laundry room)Estimated Cost: $20,0004.

For example, I invest in Indianapolis and there's not many 3+ bedrooms with 2+ bathroom MTRs so if I was looking to cohost I would go after a larger property to target the undersupplied market. 

Now, three years later, my tenant reported cracks in every room—paint cracking and full-line cracks in the bathroom, living room, and bedroom (walls, ceiling).A drywall contractor looked at it and said it’s normal wear and tear, but I’m concerned since it’s in every room.

They are a bit undersized but perfectly suitable for 1 bedroom apartments and the slight increase in costs is far less than the costs associated with venting the units properly.

Bedroom requirements can change depending on local code.

You will likely need to rehab for any strategy but Co-Living will be more bedroom additions which is less cost compared to kitchen and bath remodels that are more needed for furnished rentals. 

I am of the opinion that the best STRs are properties that don't compete with hotels - meaning that they are 4-5 bedrooms for large groups or have a unique location/setting. 

The second that the ~$1400 face value of a 3 bedroom voucher is going to get you that rent rate).

Rent in the neighborhood is $895 for a 2 bedroom, 1 and 1/2 bathroom, so for 4 units it will total up to $3,580 ($1,073 difference).