If one house needs paint and carpet and another one needs a full gut rehab for the kitchens and baths how can a fixed percentage for rehab cost have any basis is reality?

Paint, or frame, or other construction trade.

Maybe just paint.

Exterior should be scraped and painted or vinyl sided, Some plaster repair needed in both apts.

I think I would put the $40-60k into a second property and get another $800/mo in rent instead of only $400 additional on this property.Do some basic landscaping - removing the overgrown shrubs and trees, paint the outside, list it for rent and see if you get a good response.

., painting, would not change the basis.

Fast forward to now and she owes me $300 for the water bill I paid off when I purchased it and $300 for half of the rent from a few months ago ($600 total) and to top it off she presented me with a list of repairs that she wants me to take care of namely painting the house and replacing the kitchen floor and carpet, although she never gave a list to the previous owner that was charging her more rent.

I can't imagine meeting any resistance to rezoning, especially for the parking lot option or acquiring a few additional adjoining parcels and rezoning it for retail/restaurant space.

. $3-4 k in carpet and new garage door and paint.

The entrance to this unit faces out from the rear of the house.There is an issue with excess moisture in this unit in particular.