I know it increases ARV when it goes from 2/1 upstairs to 4/2 but my concern is similar that rooms will be too small.  

Hi Wilson, I'm using Guesty for Hosts now, but's a low-end, dated solution that's, increasingly, being positioned as an on-ramp to a higher-cost Guesty for Pros upsell. 

If it is stabilized, CoC will look better in Year 1 but won't increase as much over time. 

The greater metro area’s median home price increased by a more modest 1.1% to $466,998 over that same period.

This is the first time I heard the refinance cost deductions are not spread out via increasing via increasing the basis aka the loan amount/purchase price.

Will it increase the rent price?

Doing this increased the value of my holding 2.5x, possibly 3x, I will know for sure when I sell in the coming year or two.With that said, DON'T DO IT.Financing, and for the most part the construction, will be the easy part  It is permitting that is the killer. 

So, if you would prefer to receive that extra 3% as cash assistance, it may be worth increasing what you're putting into the deal to get it that way.

Can rents be increased or are they at market? 

I've had bad experiences with two different property management companies in Columbus that stemmed from them not taking timely action on repairs that cost me a lot of money and also not identifying obvious things in inspections that led to higher turnover rates and increased the time that it took to get the unit ready for the next tenant.