I would make improvements to the property only when doing so would cost less than the value added to the property.

Virtually everyone lives somewhere especially true for those that pay taxes (in CA property and income tax).  

Doing so will help you avoid capital gains tax if you decide to sell later.Second: Test it out by renting the property for a year.

I think having a balanced budget would be ideal where you allocate money into buying another property and money set aside for renovations.

Some of the most in-demand upgrades include:✅ Modern, open-concept layouts – Knocking down walls to create larger living spaces✅ High-end but cost-effective finishes – Quartz countertops, LVP flooring, and neutral color palettes✅ Energy-efficient upgrades – Smart thermostats, updated HVAC systems, and LED lighting✅ Curb appeal improvements – Fresh exterior paint, desert-friendly landscaping, and modern front doorsFinal ThoughtsWhile finding a property that offers both appreciation and cash flow is tough, there are still solid BRRRR opportunities in Phoenix if you know where to look.

This property was in terrible condition, however will a little vision and hard work it paid off.

I purchased a property in the 77003 zip code which is 1.5 miles from downtown.  

I purchased my first investment property through an online auction for delinquent property tax.

Are you looking to acquire more S8 properties?

That said, you will need to make sure the property meets the definition of rural first.