What considerations or legal implications should I be thinking about before telling him his rent will be going up?

Do not rely on it for legal advice.

If I have to account for all things that are part of doing business then my ROI will be even lower: I also have an office rent, staffing, insurances (car, office, commercial umbrella, persona umbrella), HR, legal and the other things that I have to pay just because I am doing business."

Can I legally list her as a landlord on the lease as well or no?

Most want a simple "cosmetic" rehab that can be finished in 90 days.Regardless, I always advise any VA loan buyer to write an offer such that Seller pays 4% of sale price back to Buyer to pay all possible closing costs and pre-paid items ( like the first years worth of home owner insurance, etc.).

@Denise PauzanoNot a lawyer-https://www.nolo.com/legal-encyclopedia/eviction-notices-nonpayment-rent-pennsylvania.html That says 10 day notice to pay or quit unless otherwise specified in the lease

in Jackson its the RIG meeting once a week.. keep in mind though advertising a property you dont own in MS is not legal.. its done every day but if someone turns you into the department of real estate your going to spend some money defending yourself.I had a client in MS.. now granted he was a volume player in the turn key space but he would advertise his BRRRRs before he owned them. 

Developers typically build for 9 caps break even and after long term capital gains, real estate commissions, attorney legal fees, etc. they tend to sell for a 5.5 to 6.5 cap for a 200 basis point spread.

Don't cheap out on this as it is a tricky legal situation, you will want to talk to a lawyer before getting into syndication.

In order for those to be legal and be able to get your CO, you should keep everything above board.