Here is a breakdown of the items they saw that needs attention.Needs minor trash removal; needs mownSupport post trim needs replaced; badly deteriorated; upper trim needs scraped and paintedBroken panes on side back needs replacedReplace fixture on front porch; flood lights on backNeeds some minor trash removed and minor work done220 wiring needs secured;not up to code, needs to be placed inside conduit.Install new furnace filterClean and paint register ventsInstall apprx. 4 door stopsFull interior rent ready cleaning required after all work completeReplace as needed to match all light bulbsSteam clean all carpet; sweep and mop vinylReplace missing storm door, paint interior doorPaint all wallsPaint door; interior shows signs of previous leak, but doesn’t appear to be a current problem; paint interiorSeal gaps in side window; paint all; seals appear damaged on double pane windows; may not be an issueReplace screensInstall two smoke detectorsInstall two blindsTouch up, as neededPaint all window sealsSeals appear bad; paintInstall screenVery old and drawers fall out; should be replaced with new; secure handles, if keptHas several large chips; functional sink otherwiseInstall two strainers Install fire extinguisherPaint side exit doorEstimated cost is $4,000. 

An additional 17% for those functions?

Assuming the kitchen and bathroom in place are functional, complete, and absent health/safety hazards, certainly. 

Do you see a point where this strategy of adding functional space reduces its value factor?

The function of individual leases (which do not designate bedrooms) is to provide the tenant the peace of mind that they will not be held financially liable for non-payment by the other occupants, and to give us the ability to take enforcement action against individual occupants without having to involve the other residents.

If you do propose to stay involved with the deal, what are your qualifications that would lead an investor to engage you in performing the functions you see yourself executing?

@Thomas N.I've used a clause in my lease to the effect that "tenant understands and acknowledges that the fireplace is for decorative purposes and is not functional."  

I've thought of starting 4+ discussions now and after using the search function have found that the topic has already been discussed!

It is applicable because it is a similar support function to real estate. 

People who do not function from that scope of thinking have made wherever they invest work.