7 years to 7 figure wealth question

[Michael Holland]

Hi All,

I was reading this article(http://www.biggerpockets.com/renewsblog/wp-content/uploads/2015/10/7-Years-to-7-Figure-Wealth.pdf) over the weekend and had a question. 

Within it, Brandon references "forced appreciation" of 10% within the first year of ownership for each new property purchase. I assume this means to do some renovations to the properties, right? If so, why is this not factored into costs at all? Wouldn't this significantly reduce the cashflow for year 1 for each property? And in turn lengthen the entire timeline? Or am I missing something?

What are some examples of renovations which would be most cost effective to get the numbers to work as suggested?

Thanks!