I have a decent understanding of flooring and painting now. 

Paint the outside, painted the units, replaced carpeting, new fixtures...

It's in good shape, but I'm wondering if we'd see the ROI in the refinance from a higher appraisal if we decided to rip it out and add sheetrock and recessed lighting.

(water is your worst enemy outside of vacancy)A: "funny you ask, as you can see the wall is patched but not finished or painted from a leak that happened upstairs, it's been that way for... 6-7 months."

Value is being added to the deal but rehabbing the cosmetics of the house, kitchen, bath, paint, and floors.

They appear ok at first, but then they peel because the coating on them is not paint. 

Even in the best scenario you would have spent $1,500-$2,000 to update the smoke detectors and C02 testers, cleaned the carpet, re-glaze the bathtub, update any leaks and light paint and wall repairs.  

In the worst case, if everything done is unpermitted, they may demand you rip every thing out and start over.

If needed you can prime an paint the wall with stain blocking paint.

We are furnishing with contract grade quality and amenity heavy (game room/hot tub/murals/new paint/lighting and ALL basics needed to host a 5* stay so all bedding, kitchen items, bathroom items, linen and bedding as well as the labor for trades.