I have one floor plan in my project that is set up for this.. out of 90 homes we have built  we only sold 4 of them .  

I've already renovated one of the bathrooms, and I’m planning to paint the interior, update the kitchen cabinets, possibly sand the wood floors, build a fence is a corner lot and increase the rent for the room since my tenant is currently renting the entire 3-bedroom, 2-bathroom house for $800 a month.

That's already in the law and applies to floors, windows, lawn, etc.

Always be cautious of what you charge on things like paint, flooring etc.. most judges will use life expectancy and divide out a pro rated amount you could charge the tenant for excessive damage and not normal wear and tear 

Faux wood floors, new blinds.

i.e. paint, flooring, cabinets, tile, etc.  

You have the mortgage, taxes, insurance, maintenance, capital expenditures (roof, flooring, etc.), and also need to consider the cost of vacancies or bad tenants.I also recommend you charge market rate, for yourself and the tenant.

Had the same issue with some floor joists on a recent sale: Inspector called them out for the span exceeding current code, structural engineer said that according to his math the floor should have collapsed, but it’s not even bouncy and has been doing its job for many decades.

They extensively damaged the property from floor to ceiling.  

The wood floors were refinished.