Show your house just as it is, reflecting all the good times you have spent there.

I regularly update it to reflect the most accurate information in the Cleveland market.

The first spreadsheet reflected that wife logged 844.75 hours managing the rental properties in 2014, and the second spreadsheet showed a total of 1,136.25 hours.

-Do I adjust the asking price downward for the costs of the REHAB in order to reflect the realistic offer price?

What you said above seems to reflect what I know as well.This is why I have a CPA. 

I'm sure there are submarkets within Chicago that don't reflect the overall trends of the city. 

That should have been reflected in a lower offer price. 

Keep in mind it tend to take an institutional lender a minimum of 6-12 months before they foreclosure on a property along with an addional several months to return it to the marketI would not put to much stock in the low unemployment rates as many of the workers came to West Texas to take a job and left when the job was terminated and therefore would not be reflected in the numbersAdditionally, many Sellers with equity have a hard time with the new reality .

But, if the market is stable and my annual numbers show solid 5% per year increases in rents and an average of 3% per year expense increases, then I think the pro form should reflect that.

Capitalization rates only reflect how a business is performing under the current management.