In considering how much to renovate and upgrade, I always analyze how much the unit will rent for and what the competition is offering.

If you bill the water back to the tenant you need to lower your rent to stay competitive in the marketplace.  

You will have plenty of competition.  

From what I hear everyone and their mom is getting their license now so there is a lot of competition.

Hi Doug,Your direct competition is 11225 S Whipple which Sold for $235K, but this property is on a 60 foot wide lot.

Check out your competition and see what their staged homes look like.

Would the following distribution be fair  or  competitive in the market (I know this depends on the people, but I'd like to poll public opinion)Bob- 10k at 50% for doing all the operations (buying, rennovating, selling)sally - 2k at 20% capital contribution (20% of 50%)Joe - 3k at 15% capital contribution (30% of 50%)Eric - 5k at 25% capital contribution (50% of 50%)

Other than them checking a website your advertising on for comparisons on rents that they may run across,  I doubt they would care or be interested in what you are getting income wise until it is time you may consider selling.Good for you if your able to command the higher rent rate for similar unit that is above the competition, they are either lazy or out for coffee.They don't have access to income tax records.They can look up  public records for property tax amounts and payment history and property valuation per city assessor.

He has an old list of rental properties which are not on the MLS and has offered to go through them and find interesting deals, where there would likely be no competition (or much less).

I will say, there is a lot of investor competition, most of it is newbies who don't really know what they are doing.