We eventually want to rent out both units, so our strategy is to improve our unit in a way that both improves our quality of life but also improves rental income potential.The first 6 months were spent catching up on deferred maintenance on the interior/exterior.

If you can improve the building standards, or if you budget for repairs and have the human resources to handle all of it cheaply, it might work for you.    

Quote from @David Lund: I would spend your time reading books, listening to podcasts, studying the market, improving credit, saving money, and developing a plan of action.

You can't improve property you already own or pay down debt on property you own.

Solid potential for appreciation, multiple exit strategies, just the right amount of work needed to be done to where it scared off some competition I think, but still plenty of room for us to improve without having to do a full blown renovation.

Solid potential for appreciation, multiple exit strategies, just the right amount of work needed to be done to where it scared off some competition I think, but still plenty of room for us to improve without having to do a full blown renovation.

I'm hoping to avoid this route as I want to retain cash on hand for any actual repairs or improvements.

If you can add a value play in rents and renovations that would increase rents will improve the Net profits to have a more proficient property. 

Is there debt that needs to be paid off to improve your credit and your pre-approval amount?

I am caught in the middle of a project, where my remodel is improving the building value to much & now may require lifting the house & new foundation.