Good tenants don't generally pay a 12-20% premium for a nicer place that's otherwise similar to alternatives. 

All of these determine the premium, in addition to other factors like the Construction, Occupancy, Protection and other Exposures.  

A lot of buyers in search of turnkey want everything together in a nice tidy package, so to speak, and they're typically seeking it from someone whose business model it is to provide turnkey ... it's the package that makes it worth the premium price, not just the condition of the property or the fact that it's rented.

You can get a premium sale price with above market rents if you structure properly.Happy InvestingDerek Dombeck

Really, I think your options are to update/remodel what you have and make sure you're getting premium rent for the area OR just SELL (as is) and put your equity elsewhere.

MFs run $400k+ easy here in town and are selling at a premium. 

I noticed that the lender increased my mortgage insurance (MI) premium to almost double the original amount. 

@Tim Swierczek wow insurance premiums are higher than I thought. 

We look at this metrics (among others) as fundamentals that very much so indicate a healthy market (healthy location) where not only there will be high demand for rental units but renters will actually be able to pay rent and even pay a premium for more modern (or renovated) units, giving us the opportunity to add value to our properties that way.I hope this helps.

If you are the buyer, offer to pay for the title costs, if agreed to, stipulate in your contract that your attorney shall act act as the title agent and has the right to collect all title premium.