You probably will have trouble getting around % of total cost, however, there are standard ways to incentivize a builder to complete on budget.

Dues in my property's neighborhood increased by 20% right after I purchased because of a low reserve fund.

The re-positioning plan will be specific to your strategy and property, particularly the pace that you want to realize the value for future deals and your debt structure.Regarding the test scenario, if it works, the $50-75/mo incremental increase will certainly justify the rehab cost you mentioned at most any market cap.  

Different areas have different standards for listing the square footage.  

I am 90% satisfied with their platform however the 10% dissatisfaction may increase shortly as they currently have 2 of my loans in default...actually only 1 in default/foreclosure and the other one is just very LATE!

Many of us were looking for that increased income and cash flow and the juicy benefits that the money could provide. 

Buy in desirable neighborhoods, rehab to a standard that you would want to live in the rental. 

Most likely than not you weren't be able to get a standard loan for a house that would require $40k of rehab.

If you need to increase rent, just issue the notice. 

There is a standard TN state form that they can provide you or the potential buyer with however they may not know about any code violations if they purchased the home in the current condition, you stated many owners have done their own work to the home.