Outside of aesthetics, make sure you have cleaners, maintenance and turnaround worked out so you go in with a solid plan.

I completely agree that luxury rentals need to offer more than just aesthetic appeal; they need to resonate with tenant expectations and justify the premium rents.

We have an acoustic panel set in there for aesthetics and sound.

That's a very small inventory when especially considering buyer needs like, budget, location, bedrooms and aesthetics. 

Regarding borrow's DTI, Chase thinks that this item is not that important.I wonder will my high DTI impact the loan underwriting?

Refer to your state, city and county resources for any required items, or recommended inspections. 

$540 is not unreasonable for a home of that size and the items you mention.

In my personal experiences a lot of structural items start with bad drainage.

Wanted to get some thoughts from more seasoned small multifamily investors on a few items or any other suggestions:- Any specific pros/cons of any particular states in SE (TN, AL, GA, NC, SC) to consider?

Some may have very small thresholds for repair holdbacks on purchases but this is typically limited to make ready items not to exceed $2,500 in costs to cure.