The rent should be based on market conditions and the amount of money you need to collect for your business to remain viable and profitable at a level you are comfortable with.

For compensation, you could keep their security deposit as you are within your rights to do so based on the lease you signed.

I am running numbers based on the worst-case scenario. 

Most paid way too much, based on multiples that were based on weird years. 

Also discuss with the contractor the time expected for the project if its small, mid or large and if it needs permits and how long would it take for permitting and all, also payment terms, make sure you go with payment terms that are fair to you and the contractor (so many terms but most common is monthly based on completed work with an upfront for materials) and ALWAYS keep the last payment until project is closed (retainage) and you do your walkthrough and if there's any issues you write them down and provide the contractor with (punch list to release the retainer once they're corrected or fixed). read about how to deal with contractors and always ask for references but it really depends on how big the job is, personally I wouldn't spend too much time doing due diligence on small jobs such as door latches or shelving rather on additions, layout change and other scopes.Good luck!

Expect financing anywhere from 80-90% of Purchase, 100% of rehab (funded in draws), up to 85-90% LTC.Your best bet is getting it in front of a number of lenders efficiently to see who all the 'real players' are for you in this scenario.

Then, run your numbers on the potential STR income - what are your expenses going to be (they will be more), and what is your projected income based on looking at competition in your area on the sites?

. - I would suggest posting here on biggerpocket in the classifeds section, on real estate Facebook groups, and find some local agents/wholesalers.Make the downpayment and interest whatever you want based on your current needs. 

There are still areas where you can buy units for $200k/ door but they require a lot of work usually and covering all operating expenses and interest payments can be challenging base on low-ish rent levels in some places.

We just need to figure out where to base it (eg.