They won't really look at the cost with that appraisal, but will look at the materials and workmanship for any upgrades/downgrades of value. 

The Lead investor is the one finding the property, setting up management, raising money, managing repairs and upgrades, dealing with insurance, making distributions to investors and completing all the tax documents for the investors. 

talk to the dept of health first (records requirements etc), establish what upgrades/maintenance required, line up a reliable repair/handyman/type person, consult lawyer, and then make your offer, see if you can buy the land it's on via lot line adjustment (ideal scenario). a lot to be aware of, such as system upgrades or county code changes bringing in the requirement to add metered connections to an older small system, for just one example.Otherwise- owner doesn't want to manage, I doubt you really do either but could be wrong. 

The renovation is significant (flooring, counters, heating, upgrading the bathrooms, etc.), but not a complete remodel (not adding or expanding structures).

Compete with new constructions with upgraded as granite or Quartz counter tops, central air and heat,and in unit laundry.

I'm also hoping to find something that is ideally under market value that needs cosmetic upgrading so there is some value add.

My next visit to the property to upgrade flooring in primary bedroom about two weeks later it was raining and I noticed 1.

Existing structures used for transient rental purposes must be upgraded to meet current requirements and codes.

Specifically around efficiency in devices when not maintained and challenges with realizing potential earnings with device electrification upgrades.

In doing so we determined we needed to upgrade the 50amp boxes to 100amp and took on this additional expense.