I own several hundred rental units in other states, otherwise I'd join you in helping cover the costs.

The best projects I've seen from my desk are folks who are doing hyper-targeted, well-researched deals that are generally in higher cost of living (there are exceptions) areas. 

Unless you're in a Class A Neighborhood like Palmer Woods, Indian Village, Sherwood, etc,. the additional rent probably won't support the cost to build:(More profitable to take the build funds and buy another property.DM us if you'd like to discuss more...

We were shocked at the cost of goods, lumber, cabinets, paint, plumbing.

Insurance cost for weather-related disasters is growing to a major concern in many of the southern markets.

The truth is, they will keep playing games and milk you for every penny they can, then they will leave the house a mess and cost more with cleaning, repairs, and vacancy.

I looking to take action Can anyone help with some questions I haveWill this property cost me to much down the road?

Typically, we see anywhere from $600 to over $1000 per unit (maintenance and turn costs)  depending on these factors. 

Its definitely a big cost/premium risk allocation discussion

There isn't enough information in here about the current state of the house to be able to advise you, but I would think #3 is a definite no as it seems unnecessary from a cost perspective although that market has scale to accept it.