I got a lot of work ahead of me since in order to figure out ARV I also have to figure out market rents (this property ranges from 3 bedroom unit to a studio. 

Even if maxing out impact fees say 10k-15k for a 3 bedroom 1200 sq feet unit, the difference in rent would be make up the difference in a year max. 

If you have a 5 bedroom house even in a $500k house I do not think it is even conceivable that you would rent all the rooms - I'd only bank on one or two roommates - and since Wichita is what I'd call a little big town - most people aren't going to want to live with someone they really don't know.I think you're most realistic situation is buy a very nice duplex (there are a few from time to time that are high end) that will come for sale - live in one half and rent out the other where they should make  a vast majority of your mortgage payment and live for nearly free.Secondly - buy an affordable house (if your intent is to move in a short time span so below $250k or so) and then only bank on having one or two roommates and only charging them $750 or less depending on how nice the place is - unless you have a large base of friends that are willing to live with you.Just my .02 -- and best of luck!!!   

I like to stay local and self manage, so all my properties are within 20 minutes drive from my house, most are actually within walking distance. 3-4 bedrooms seem to be more in demand than 1-2 bedrooms.

He moved walls to open the layout downstairs (it's a split level), added 2 bedrooms to the house to increase income potential, painted almost every room in the home (they had a crazy green color), as well as worked on the outside of the home to increase the overall value and re did the kitchen downstairs.

For example, if it is square feet then is there a way to add one more bedroom on property?

It's an SFR where I currently rent bedrooms, unfortunately not many 2-4 units in my area.2.

He did flooring, countertops, paint, ripping out a weird semi-wet bar from the basement room to convert to a closet so it can operate as a functioning bedroom now.

I'm under contract on a property where the county records report one less bedroom and one less bathroom than the property actually has.

The agreement states the tenant is responsible through a 60 day notice and a buy-out fee of $1,500, 2,500, 3000 ...... depending on if its a one, two, or three bedroom.