Transportation providing easy access to  already gentrified areas (under 1 hour)decreasing crime rate which people may have been referring to indirectlygreen space/ some space for communal gatherings/building - increase in houses being flipped bringing in higher earning residentsincrease in permits being filed I also often browse city-data forum and read changing sentiments about areas you hear one side saying stay far away and the other who actually live there say its not that bad depending on how early you are in the cycle  will determine the number of signs you see but location is the first sign if its the only one you see you may be waiting a while

I echo the other sentiments here about not trading.

I agree with the sentiment of @Greg R. except I question if even 3 years ago with significantly lower cost if it was worth it.  

Meanwhile Local helps your later sentiments of increasing the desirability of the neighborhoods that you share with the homeowner.

Aside from constant threats to drastically alter the property tax structure, existing and expanding rent control, anti-landlord regulatory environment, anti-landlord/investor public sentiment, litigious tendencies, liberal judges, tents popping up everywhere, cardboard sign carrying panhandlers at virtually every roadway intersection, trash on roads pretty much everywhere you look, increasing crime, high cost to get pretty much anything done, and not the greatest economics (speaking from an investment point of view such as price-to-rent ratio, etc), probably my biggest reason is that I like to invest in places where people are moving TO, and avoid places where people are moving FROM. 

They do not want to get emotionally attached because this home is sentimental to their family.

I agree with many of your sentiments about the tenants' responsibility to pay. 

We are getting the house for a good price, it has a lot of sentimental value as well as we have rented it for 6 years, prior to that my wife's parents had rented it for over 22 years (I know) but we understand the value has to make sense as well, similar houses in the same block have been sold for much more, same layout and footprint.

Community sentiment still has some negative thoughts, which translates to good buys for those with vision.

Finally I choose 18 mo refi, as a long shot to account for emotions and sentimental value.