I'm not sure how much this matters in terms of staying longer in my condo vs buying a new primary, but I did just a few months ago upgrade my HVAC ($12k) and am doing other value-add to it in the meantime. 

Also, consider tax credits and incentives for energy-efficient upgrades or first-time homebuyer programs that could lower your costs and improve your return on investment.In summary, starting in California with an FHA loan and considering partnerships and LLC structures can set you up well.

However, if the renovation significantly improved or upgraded the property, you might need to capitalize it as an improvement, depreciating it over 27.5 years.If this was STR, you could write off the improvement under bonus depreciation as well.

While the units needed new kitchens, baths, flooring, and paint, they were primed and ready for upgrades.

Whether you're looking to continue generating income or upgrade to meet market rents, this well-maintained property offers both flexibility and value.

I'd recommend to first look at where you'd like to invest it to see if it's feasible or if you need to adjust your buying criteria.If you're not in the market for something new then I'd look into adding an ADU on the lot and upgrading the windows on the main unit to triple pane glass so that the noise doesn't bother your future tenants.

For quick math one month vacancy is almost 2k lost income, re-leasing expenses 2k and there are always at least 2k worth of work (sometimes just upgrades we choose to do).

Show some cherry picked comps and be specific on why the value should be lowered, making sure to site current condition if anything needs upgrades, etc.

Have rehabbed and upgraded several times during its twenty yr rental history.

By the time you want to rest on your laurels, it would be good to have your loans not only paid off, but are also ahead of your future capex, meaning all major things already upgraded.