However, you should have minimum income standards for each unit to provide you.

The containers are cut open towards the middle part, so it doesn't feel like narrow containers.So, maybe this would be a way to utilize some lots that have problems and get them way below standard cost and make them buildable. https://www.pinterest.com/pin/381750505888733170/

It's really important to run your business with an ironclad lease, rules and standards however... the human factor is also something you should take into consideration as well as compassion and just plain 'doing the right thing' regardless of what is written in the lease - in the end you want to make your money, the right way without causing others hardships if you can and be seen as a respectful landlord/investor which helps the community. 

I would believe that figure if you are just going to cut a bigger window from Menards into the basement opening, reusing all the same siding, no drain tile, no real digging, but at that point, its not really an egress window, its just a slightly larger standard window, which doesn't meet your criteria.

Could someone please give me your advice on which is the industry standard on evaluating the property value.

If the potential buyer wants a color on the wall and not standard white that is there, then I paint it a color that they want.

You need an option contract not a standard agreement of sale.

Right now I am forced to take the standard deduction.

Only thing HUD cares about is does the property meet its standards

If you spend under the $16,000 they pay under the Actual Cash Value payment (i.e. no depreciation reimbursed) then you get to keep the remainder... so say you end up being able to get everything done for $14,000, then you get to keep the remaining $2,000 which is not technically a profit, just that you were able to do the repairs in a more cost-effective way than the standard market price.