Examine the projected rental income against the expense of converting the garage and possibly extra rooms.

Example with conventional I have 20% down, if the refi requires 30% to stay in then the extra 10% is limiting.Rents in the areas I am looking come in on average $2000 mo. for a place costing $250k.

We have 3 codes setup for just in case uses.I do have extra codes, none of them working.

My quick math is if I'm collecting $75 more per booking at a conservative 40 bookings per year that's $3000 in extra revenue. 

Purchased for 355k, and budgeted 20k/unit Reno and some extra for other Capex.

You will need to invest in a syndication that has a TIC(tenants in common) structure set up.Since it is more work for the sponsor, they will normally require you to put up more funds to make up for the extra work.

They can always refinance next year when rates are expected to drop, potentially lowering their mortgage payments and giving them some extra cash.

If your lease says nothing about required notice, you may be able to hold them to the extra month if they told you in writing.

In the past 2 years, I have used my extra money to pay off student loans by interest rate. 

I would also have a conversation with the contractor and inform them that you will not pay for any extras that are not approved with price and terms are agreed upon first.