What I mean to say is that there’s nothing inherently perverse/illegal about more humans congregating in a particular spot, however, that doesn’t mean that we SHOULD cram people into properties like sardines, because it tends to lead to damage, CapEx life-cycle decrease, etc.

Hey @Bryan SanderaMyself and a couple other investors I know work with Lifecycle Property Managment.

I know they are variable but from a few people that I have talked to if they do in fact do a rehab to a property usually their expenses are around 30%-35% because they replaced all the things that would have a life-cycle expectancy that would be less than a few years.

Lifecycle cost its cheaper refinish and maintain hardwood floors vs carpet.  

Oh one other thought, too@Michael GuzikThere's no simple answer here as different things work for different peopleWe try to focus more on quality (or put another way, these are items that we've found some of the most value - perceived or real - in terms of our rentals on the following):Lighting (do lots of recessed down-lighting with LEDs)GraniteHardwood Flooring (this is actually CHEAPER, but more TIME INTENSIVE)Metal Roofing (this is an aesthetic, and lifecycle cost considerationIn almost all those cases, I have more of a DIY/active management proclivity on these items because they would tend to be very COSTLY to bring in a 3rd party to do. 

While it is not complete, it does begin outlining the development process for you. http://www.biggerpockets.com/forums/44/topics/427144-lifecycle-of-a-ca-multi-family-development-dealI am an offer of help in the real estate development space.

Personally, I believe that it depends on where you are in your "life cycle" and where your RE business currently stands.For instance, if you're 25 years old, you most likely won't need to make withdrawals from your investments to support your lifestyle for ~40 years.  

I'd also very much like to one day pass the baton off to a young investor that would then become the next steward and go through a similar life cycle.

You can't beat the life cycle cost of wood floors over carpet. 

Essentially you're owning the profits at all parts of the lifecycle?