@Alex Johnson Like others have suggested, a refi might put you in a better spot. Another thing to consider are those upgrades you mentioned. Here is my logic:
5k upgrades amortized over 5 years (I use 5 years because everything gets dated and wears in about that much time)
You are looking at a monthly amortized cost of about $84.
Consider it a trade off. You are trading $84 each month so that you can get $150 extra rent each month. (Not a huge boost in income) What you are also getting, however, are tenants who have a nicer place to live. They weigh this against living in a less expensive unit and the cost of moving. Which leads to less vacancy in most cases.
Now, if it is a dog put it down. I've held onto a property too long in hopes that the market would return. In retrospect I would have been better off performing some upgrades and selling. (Even at a loss)
Good luck with your venture!
-todd
