I would want to make improvements to all units and increase the rent to market value when the renovations are completed.

Who cares about lifetime interest costs, except to the extent you can easily lower them (refinance to a lower interest rate) to increase your cashflow.

What is your Annual Rental Rate Increase look like?

You are already paying rent, so pay it to yourself to increase cash flow and accelerate savings for the next investment. 

Purchase price: $169,000 Cash invested: $33,800 Property was recently renovated to increase the value of the property and the cashflow What made you interested in investing in this type of deal?

Household Debt Rose by $184 Billion in Q1 2024; Delinquency Transition Rates Increased Across All Debt TypesMay 14, 2024

While rates may not decrease, the significant double-digit increases should level off.

It even states that the lease “will repeat itself” but doesn’t specify terms like figures or percentages for rent increases.

The mortgage would stay under the seller's name.The buyer could then rent out the unit, renovate, etc. to increase cash flow or make more money.But aside from a possible "due on clause" being called by the mortgage company, what's the benefit to the seller?

Pros - guaranteed rent, tenants stay longer on averageCons - more mgmt needed (lease violations), they tend to not take great care of properties (increase maintenance expense or deferred maintenance)