As brokers, we all have a duty to "discover and disclose" material facts.

My question is, do I just use the heavily reduced price I was able to purchase it for since it was vacant, and then the material cost of what I renovated plus what things I did contract out, even though that basis would be way under what the other renovated houses that sold near me per SF sold at, or are you able to use similar comps to determine the depreciation basis?

Quote from @Account Closed: I would say.. can you save the tub and re-glaze and redo the tile on the wall can save you $1,000 or more just on materials and labor..

Insurance companies are taking a close look at building materials, quality, and updates. 

We were able to buy low in a good neighborhood since the home was in need of some work, mainly needing cosmetic work and some deferred maintenance.

Due to inflation and the drastic increases in material, labor, and supplies, that's naturally caused carriers to rethink limits/values on file. 

Had quotes for $20,000 not including materials. 

I'm debating sponsoring other areas to hang my material up.What ways do you like to promote your business?

And the reason why your "tale of two halves" will play out as you described.Demand:  This has actually been high almost all along, but rent growth hasn't materialized in response due to high levels of new supply. 

I normally recommend a turnkey single family home (3b/1-2ba)/ light cosmetic work single family as a 1st investment.