My preference is to buy the property with no tenant in place so I can do the necessary repairs/upgrades and then choose a tenant based on my own criteria.

I finished each space with minimal upgrades.  

Tax appraisal is based solely on the house not taking into consideration what upgrades it may have or what other houses are going for.

Thank you @Todd Dexheimer and @Michael Le@Jeff Greenberg it's a very light value add. most of the heavy lifting had already been done. for this deal it's more about getting a solid, low risk income stream for the investor. in short we'll make cosmetic upgrades to units when they turn in order to keep growing rents 2% to 3% average per year.  

Always looking for ways to improve the ARV, and have one upgrade that I'm on the fence about.The gas boiler for this 1920's house is pushing 40 years old.  

Tankless is not always cheaper then replacing a tank one.Tankless, you might need to upgrade the gas size.Tankless is usually more expensive then tanked ones.So ask your self  is t worth it?  

The cost of acquisition, deeply itemized to make sure you have a real number, acurate analysis of market lot rent potential , and cost of engineering srudies then install or rehab of wells and septic install, cost of new or upgraded electical hook ups,  roads, then the multiple meetings with county zoning and water departments before you even start the rehab.

If the schools, streets, shopping and entertainment areas look like a C, attracting residents to pay the higher rates by upgrading the property to a A/B as you suggest (higher than the surrounding area) is typically not going to work out so well.  

Hello BP,This is a late post but I wanted to gather the intelligence of the community on an issue I'm fighting with consciously.

Hi,I have a rental property in Golden, CO and recently had a tenant move in that is verbally harassing, making threats to sue me and to "make me pay," and demanding repairs and cosmetic upgrades that are not necessary.