Seems like they may be sugar coating the circumstances to get an easier yes out of you.

If you haven't already found it, I would recommend checking out the White Coat Investor (book, blog, and podcast).

That may be an acceptable loss for other reasons such as inflation, increased property value, or simply the coat of money you otherwise didn't have, but it's a loss none the less.

Sometimes cabinets at the habitat cost next to nothing and look great with a fresh coat of paint and new hardware.

We've taken out the popcorn ceiling in the 4 bedrooms and bathroom and skim coated, sanded smooth and painted.

I'm not someone that's trying to sell something to you and so I don't have to sugar coat anything and tell you "it's not that bad".

First, I'd look at a longer term for your mortgage as it will lower payments which will increase your cash flow once you do rent it out.Easy ways (assuming they haven't been done already): fresh coat of paint, update light fixtures and cabinet hardware (go with classic, not trendy), replace outdated carpet and window coverings and paint your front door to add a pop of colour.

If you need to skim coat you may want to get a painter or drywall guy to bid, especially if some joints look bad or there is damage but you'd be surprised how good primer and a couple coats of flat paint makes a ceiling look.  

I found a post on White Coat Investor about using multiple 401(k)s via a SoloK or some combination thereof with an employer 401(k) to allow one to defer more than $132k (I'm married) into retirement vehicles. 

I'll buy it, slap a coat of paint on it, and it'll go up in value.