AFAIK, you do NOT need to do anything other than prove, if the government looks into the details of why you moved, that the reason you're moving is because you "upgraded" in some way on the new property (more square footage, additional bedrooms, better school system/neighborhood, etc.)

All major systems will be replaced or upgraded (HVAC, Roof, Electric, Plumbing, Insulation) as well as interior remodel.

I would need to either drop a new service to the 2nd building or upgrade the feed coming from the other building in which i don’t think that there is enough power from a 200 amp service to feed 2 finished living spaces.

Get your mechanical trades over there to tell you what's going to be required (lots of times you have to upgrade what's there, not just replace what got wet).

We bought a house for $20,000 and out about $10K into it for upgrades.

minimal upgrades, increase rents What was the outcome?

I'm almost positive the ARV is higher than what I entered (122,000 is what Zillow estimated the house is worth but based on what we upgrade it believe the ARV would be higher). 

Many tenants start asking for crazy upgrades when a new owner comes in.

Secondly, most finance advice would tell you to analyze the overall cost of owning a home, (PITI, maintenance, upgrades, furniture, art, etc) and compare that to the cost of renting.

Seller had indicated that the city said they would only be willing to go up to 35 lots, are demanding park upgrades, and demand newer homes be brought in.