Hot market, you could adjust up from 70%, slow market adjust down.

Do you think building a nice website to outline all benefits of the lot size/location, nearby amenities, pretty pictures and video and a clean way to submit bids and stay in touch with me...would all that be overkill? 

(Ultimate Goal)Goals will change and adjust based on circumstance and perhaps it's wishful thinking, but I'd like to start with the end goal -both short and long term- already in mind and formulate the plan to get there.

Others note that the marketing department wants to raise the rents for the benefit of all.

How do I make adjustments in looking at the comps?

I developed a calculator in excel that adds the rehab cost to the purchase price thus adjusting the cap rate, if the rate isn't where you want it to be lower your offer or don't make one.

The benefit to me is if there is a deadbeat, the deadbeat is limited to one room (~$400) instead of the whole unit.

No problem and sometimes the adjusted rents can also affect your offer.For example if you know a property is way undervalued you may offer more.So I would really consider both rents when analyzing and determining my offer.

HCAD also has given it a building grade adjustment of C+.  

.- Risk that prices increase substantially over the next 3-5 years, and outpace any of the benefits aboveLeaning towards selling since it’s hard to pass up free money, I’m not sure prices have much further to go from here, and we’re not sure we’d like to move back to the same home that’s been rented for 3-5 years anyway.