Shortly after Roofstock acquired them I have seen improvements and haven't had issues with bank account connectivity.  

.: With the laws that the CA legislation has passed, you could piss off a city inspector and there is nothing they can do about a safe unpermitted unit.Possibly/probably....but I think the point we are all making is - why take chances on losing time and money and stressing yourself out?

For an unrenovated 1+Den/1BA LTR in our section of Northeast though, $1,300-1,400/month is certainly in the ballpark of what I could comfortably get with some very minor improvements to the space between tenants.So all that being said, I think your target of $1,500-1,600/month for your 2BR units would be more than doable. 

Improve the grade if water flows toward or pools near the house.

Additionally, considering the time value of money is crucial, as deferred gains and tax efficiencies may improve long-term returns despite upfront losses being largely on paper.

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

For example, if the listing is selling for 200% of the last purchase of two years ago with no improvements, etc.?

I would make one distinction and that’s between an expense and a capital improvement. 

I hope that makes sense as i'm trying to better understand how to go through this process the right way and increase my chances of approval. 

Here are the playersMe - OwnerOG Developer - Original Developer that improved property before I purchasedNew Developer - New Developer currently building a new subdivisionWater District - Own the vacant land that my sewer line runs acrossCity - Well, The cityTimeline:2007 - OG developer purchases large 1 acre lot with an existing house with the intent to subdivide and create a small PUD.2008 - Improvements are made (new street, sewerlines, storm, power, water) are brought into the subdivision.