It won't be included in the appraisal or square footage.

Go to a state that you can make money in and doesn't have these type restrictions and red tape.

I've seen outrageous estimated rents, grossly incorrect square footage numbers etc.

Depending on finishes and contractors, I was given a price of roughly $250-$400/ BSF (buildable square foot). 

I usually see this as a red flag. 

I mean,  those nice people.The way you do it is just going to Zillow, look at the properties recently sold (that yellow ball) make sure the properties are as close in location and characteristics as your subject property and you just pick 3 to 7 similar properties and you take the average of the numbers, or you calculate the cost/square foot which ever fits the situation better and you get that number.NOW... this "solid" analytical method, I did when I was more of a beginner.

If new tenants were secured just before it was listed it raises a red flag. 

Considering she was getting around an 10% return from the property as rental [She got $1500/month in rent, assuming 50% expenses and a $80k home value], then a fair haircut would be 2-4%, which still puts you squarely in rip off range, in my opinion. 

Ask them to list tool inventory and supplies that they currently have in stock or on their truck(multiple cordless drivers, skill saw, oscillating multi tool, sanders, mider saw, table saw, t-square, carpenters square, hammers, drivers, multiple sizes of shop vacuum, etc). 

Would you mind sharing a little more of the specifics of your rental (price paid, # of bedrooms/baths, square footage, occupancy rate, annual revenue, etc.)?