So a 8 foot ceiling is every 4 feet a light.

A few months in (tells the tale) with positive customer reviews and if call and foot traffic is the same or better from when you opened.Equipment for build out is worthless.

If we knew that that would be covered, we could serve a higher risk population and see the same returns, or charge lower rents and see the same returns.I think you'd find that low income are paying a lot higher on a dollar per square foot basis, and that is a function of bad tenants.

I have paid 40 cents a square foot each for drywall hanging and finishing labor only, side work. 

I was wondering if anyone knows what the average cost per square foot for a full gut rehab?

Typically this will equate to a set reconstruction cost per square foot. 

Many like to use 10% of rent for that value, others at 185/month and still others 1 dollar per square foot per year.

Now, the only thing left is to put your foot on the gas!

The real answer to your question is take a look at the properties in your area that are selling for more than you believe your house is worth today and see if there are patters such as: square footage, price per square foot, bathroom tile, floor plans, paint colors, deferred maintenance, etc. and then see of those factors, which you can have any influence on with your current house and financial condition.

We're seeing costs right around $200 a square foot including all costs.