In my opinion, your offer price & value add should be based on the ROI target or hurdle rate you've established for your business. 

. :)The biggest hurdle that I think I face is the financing.

This does not seem like an unreasonable price for getting 1 apartment deal under your belt.

Tenant agrees to comply with all duties required by Wyoming Statute §1-21-1204: maintain the Premises in clean and safe condition and not unreasonably burden any common area; dispose of all garbage and other waste; maintain all plumbing fixtures in a condition as sanitary as the fixtures permit; use all electrical, plumbing, sanitary, heating, and other facilities and appliances in a reasonable manner; prevent water pipes from freezing by turning off outside spigots, disconnecting hoses, and keeping the rental heated to at least 50 degrees; replace lightbulbs, air filters, water filters, and other consumables as needed; test smoke detectors every six months and replace batteries as needed; immediately notify Agent in writing of any defects or dangerous conditions Tenant becomes aware of; replace broken or cracked glass, no matter the circumstance of breakage, unless the Tenant provides Agent with a police report detailing breakage beyond the control of Tenant; pay to repair anything damaged by the Tenant, his guests or invitees, whether through intentional act or negligence; upon termination, remove all personal property and garbage either owned or placed on the Premises by Tenant and clean the Premises to the condition at the beginning of the AgreementCreate a policy and stick to it.

There's a reason investors are flooding into Alberta (and the US, though many more hurdles to get started there).

I guess a modified house hack with development hurdles.  

The reason I ask this is because the biggest hurdle you are going to face in the current market is falling rents in contrast to raising financing costs. 

This is an unreasonable complaint regarding businesses.

Finding the highest and best use for the land is exactly what developers do and if you can get creative in your concepts that's where you'll find ways to maximize returns that others might not see and could allow you to move forward even in today's market and hurdles like interest rates. 

It's unreasonable unless you are actually staffing this contractor.- Show them listings or HUD's of recent deals you've done to prove you might bring repeat business (If applicable).- A lot of the trouble is finding a good, professional contractor that will STAY good & professional.