I am breaking it down, but I don't see why it is so costly.For instance:A stove- 500Backsplash-400Cooktop - 500Granite Counter Tops- 1500Dishwasher- 500New Sink - 250Fridge - 550Cabinets- Cost to refinish older cabinets in nicer condition ????

Geoffrey It will cost you about $700/unit and you will typically see a break-even point at 1 year.

Supposedly this break happens up to the connection to the city.

I have paid my cleaners (without them have asking) time and 1/2 for Christmas eve, New Years Day, Easter and Mother's Day.

you'll be break even / slightly negative. 

If I sell, I'd probably look to reinvest it elsewhere (probably out of CA) for combination of cashflow (or break even at least) and appreciation.If I do keep it, the only other way I can think of improving performance is to add another bathroom  (becomes 3 bed/2 bath) or another bed and bath (becomes 4 bed/2 bath).

If you find a property in a good location and can at least break even on a deal I think it would be a buy.

Sadly, my neighbor said the non-paying tenants are purposely breaking things in the house to cause violations and prolong the eviction process

Too little and the tiles will sound hollow when tapped (and will break), too much and it seems into your grout lines.  

The floor is not rigid enough, if the floor moves when you walk on it, then the grip strip will break apart.