I will be interested in hearing your thoughts on if/how can I improve my strategy   

Assure them that as long as they're happy living there and pay their rent on time each month, you aren't planning on doing either right from day 1.During this conversation with the tenant, also ask them if there are any maintenance issues you should know about, or things they would like fixed up - this will have the dual benefit of giving you the inside scoop on any deferred maintenance issues that the owner themselves might not currently be aware of, as well as giving you some ideas for improvements you could make that would give you cover to raise their rent in the future. 

It would be very hard for us to improve.

@Matt Skog thanks for the mention even though it makes me sick to my stomach to see this.

We were saved because it was a high cost area where improvements add a lot of value. 

You know the property can be improved.

Having 20 units in a D class area where have of the properties are falling apart and the value of the combined portfolio is 1M is not as impressive as 4 units in a solid A class area that have plenty of potential of improving in value and provide solid and stable returns. 

", but I am unsure if that only applies if we were to stay in the unit for less then 24 months.We would ideally like to live in the unit for 24 months, do some improvements and re-rent the unit at market rates, but Im not entirely sure what the rules are here.

Focus on improving all those vs just trying to win a low bid.Dallas area is tough right now. 

However, don't OVER improve your property either.