The lease I use is a mature document that has been improved every year over the last decades based on issues that came up, after every major court case in Wisconsin etc.

Do this: upload all of your documents quickly, take their advice on how to improve your DTI, and don't have delusions of grandeur.

We were prepared to pay a little extra every month in mortgage for both the ease of construction and an improvement in the house we live in but a little extra turned into a lot extra and now we are not sure if its worth it.

The facts are this:Duplex built in 1980 with detached (2) 1 car garagesRent for long-term tenant is currently $825 while rentometer says it averages out to $1015 for the areaRent for the recently remodeled (5 years ago) for the short-term tenant is $1000Neither tenant utilizes the garageProperty taxes are $2,797.20 annuallyThe owners opinion of value is $285-300k (assessed value at $251,587)Factoring vacancy at 5% (current area is at .2%), 10% management, no capital improvements included as I'm rolling the management fee with that as I would self-manage for this first go around.

Delayed Occupancy Due to Property Repairs or Improvements Home improvements or refinancing loans for extensive changes to the property which will prevent the veteran from occupying the property while the work is being completed, constitute exceptions to the “reasonable time” requirement.

This is also a great way to improve your portfolio's cash flow! 

That way you can improve your side and she can rent out her side as is.

I'm interested in all the normal stuff: demographics, employment, mapping, zoning, supply and demand, and the value of property improvements in specific markets, both historical and current.

For electric it adds value to your building to separate and saves you cost (improving NOI and thus value) so I'd just do it that way. 

@Robert Leonard is exactly right..standard VA home loans are intended to put military members and veterans into move-in ready homes that don't require significant repairs.There is a separate loan product called the VA Renovation loan, which essentially packages a home purchase loan and a home improvement loan into a single product.