As luck would have it, my Architectural practice has specialized in energy efficiency for over 30 years...and I have designed quite a bit using the materials mentioned in the house.  

My question is should I offer the seller more money ($5,000) and say it's for appliances, flooring & other building materials I saw when I did a walk thru? 

There are several things I did to improve this: - Spend a lot of time at Home Depot/Lowes and when you hire someone try to buy the materials.

I now need to locate some good marketing materials for inherit list. 

This includes materials.

If you are reading materials based on rent credits of 50 - 100% is a good way to entice the tenant buyer to sign a lease and an option, that will not fly as far as the loan originators allowing the credit.Rule 1.

Doing the cabinets then tile up to saves tile material and labor costs so when possible, that way is better, but not always.Great job so far, I would be interested to hear about your final numbers once completed.

Break it down by trade and it can fluctuate immensely by the sub, their skill level and the relationship in regards to labor and material discounts.Depending on the local gov and permit regs a seemingly easy job can get way off course with timelines, inspections, new laws, codes , materials, designing the layout fit functionaly within the foundation footprint ,etc.Your basiclally selling a construction project and not rental propery requiring rehab.

I've gotten some great marketing material here as well as how to do real estate.

@Shawn Holsapple Thanks so much for all the reading links, have read much of the Rich Dad material and also Tim Ferriss.