Gave up Hollwood and the beaches for sq footage and lower cost of living. 

The bank is saying that the financials are necessary because the tenant occupies 65% of the building and the appraiser has identified that there is a functional obsolescence to the floor plan of the building (department store size square footage in a downtown location). 

I know in some states they allow you to have each tenant pay their "portion" based on square footage.

I like to look for properties I can add additional square footage to and in areas that will appreciate.

We have just over 50% of the square footage, and there are three other business located there.I would like to buy the property but I believe the value is around $1.35M.

The property is on the books with the city as a Two Family, lists the finished basement square footage and the third kitchen in the basement.

(Triplex 3/3 has wood structure built in the 30's with smaller lot and less square footage of the house that is a 3/3, built in 2000 that is a stilt home that sold for 355K.Based on purchasing at 400K  I feel that I can cover my costs easily with a 30% occupancy rate. 

I the case of a pool, the answer is no.To answer specifically what the value add is in dollars for each item is impossible, however, the best place to spend money to improve value above and beyond the costs of the value add are in kitchens, baths, cosmetics (paint, carpet/tile, cabinets, electrical and plumbing fixtures) and curb appeal (landscaping).Other value adds can be moving and adding walls for better floor plans, adding square footage, adding beds/baths, adding amenities.

You then look at your subject property and multiply that $/Sq.Ft by the square footage in the subject house to determine the "retail value" of the subject house, aka the ARV.Some guys will also use the TAX APPRAISAL VALUE as one of the factors that they average together with the comps to get the avg.

Sometimes the square footage is less efficient so you actually get less rent.I don't know that there is anything that would preclude me buying again if the numbers worked out.Just my opinion on limited experience.Good Luck.Bill