Since investing in real estate my perception about money has change. 

That means you have less down payment.The perception from a lenders' prospective is that, if you put say $20K into a project, the likelihood of walking you away when things get tough is slim.

People talk a lot about foreign investment into the market, but I personally believe it has a lot more to do about perception then reality and its really the local speculators that are driving the market. 

Highway perception is invaluable, so for me and my investing, I'm thrilled to have the Silk Mill going in.Also keep in mind that chances are the rental rates will be higher due to the value add. 

It's the perception, first and foremost. 

I could build, but the cost is prohibitive compared to buying an existing house and remodeling.Additionally, the perception in my market is that apartment = low income housing. 

Unfortunately, the cost of living is very high in Loudoun County, or at least that's my perception.

@Jeremiah Hilliard the tenants perception is something that you won't be able to control.  

Many reasons. 1) she may leave anyway when you raise her rent (if she doesn't then what is your plan)2) if you move in there you are only out $700 a month on rental income3) it requires the most reno work which you intend to do.4) moving into one of the other units and not raising her rent immediately cost you an additional $300 + a month in lost income.5) smoothing over any hard feelings with the other tenants will be easier when you explain you need to reno her unit rather than dealing with their reaction to you jacking her rent and forcing her out.It's a matter of perception so if you want her apartment just take it and move forward.

If you can, get a hold of the minutes from the last HOA meeting to gauge the owners' perception of rental property.