My perception is there is not a lot of demand for homeowner properties below that.

However; it depends on your perception, because even in a highly populated area, there are still smaller niches where you can be the big fish.I'm with @J.

So, how sophisticated are these landlords and her expertise in business matters?

Of course the perception comes down to the delivery of the message.

You're under no obligation to bring it up to their perception of any degree of craftsmanship, but their work is to be customary for repairs in the industry.Might be able to have this as a DIY, point tucking and fixing cracks, no idea how bad it is.Might ask how much it would be to strip it, another DIY project, and reside it with something else. :)

Reader's Digest version;In timeBy management through or by;changing use to higher and betterchanging external factors that lower valueincrease utilitymake improvementschanging perceptions of/for useincrease competitive advantage through regulatory changes for competitorsaccelerate debt servicereduce expenses-increase incomeThe end :)

Very smart to learn all the ways to do stuff, but you need to keep it simple when talking to sellers unless they are pretty sophisticated.

Also do I send yellow letters or should I send a more sophisticated typewritten letter?

Once the renovations are done, they will all enjoy a more sophisticated, modern and functional space, so the rents will be conducive with the market, but remain reasonable for the tenants and more opportunities to increase my revenue.

To obtain such strategies may require sophisticated computation, which are not familiar with general public or financial adviors.