We added some of these features:Completely renovated Home with new granite kitchen & 1/2 bath counters.

Btw, I have a nice 2 bedroom 2 bath condo townhome with granite counters, bamboo wood floors,etc. on manchaca, 78704 that I am trying to lease for $2100 but its a 12 month lease : ) Btw, I would do the 203k loan.

.-  Most granite companies will require that the cabinets are installed before they take measurements for the granite. 

To keep rehab budget in tact would it be hardwood in Living room dining room, or granite in kitchen?

The "put back" was to include mostly new plumbing and electrical, which were assumed to be junk based on burst pipes + mold/water damage (and to be conservative because the house was winterized), solid wood kitchen cabs, granite kitchen counters and bath vanities, stainless appliances, tiled baths, hardwoods throughout, 28 replacement windows,  interior (obviously) and exterior painting, 100 feet of fencing in the backyard, and a few thousand dollars for landscaping considering the yard consisted of dead grass and stumps.  

Note that we decked it out with granite & stainless steel appliances to attract the college educated millennials that wanted to live near the hopping nightlife that the neighborhood has to offer.For more info on the neighborhoods and rental properties available in them check out The Ultimate Guide to Grading Cleveland Neighborhoods. 

Now, as for the gut job, that is market specific but in my area cosmetic touch up jobs are about $10-20 per foot depending on finishes really, like if someone wants granite vs laminate countertops.

Just suggesting... look into new appliances, maybe granite countertops when the other rentals do not have it?

He's going to move out on Monday, and the good news, is that he was very cooperative and he even let one of my real estate guys go into the place to check it out and feedback was perfect, he even has granite countertops in the kitchen! 

Good quality, cheap prices and they have a ton of prefab granite.