I think putting lipstick on the pig and turning it into a nice patio with cornhole, seating, etc. might be money better spent.

Perhaps....Sell on better QUALITY at a comparable price point.Some of the bigger guys (right now) are lipstick on a pig as far as quality goes--low end electrical sockets, gaps in the framing, cheap cement slumps etc...

That makes sense to dig into some problems further and solve the true issue rather than just putting lipstick on a pig.

However, this just sort of puts lipstick on a pig.  

I'm in San Antonio and the last 5 cosmetic or "lipstick" rehabs have been averaging about $11.50 per sq ft.

Clark (Vegas), Los Angeles, & Riverside Counties.Rehabs are very light (just lipstick usually).Check out our group thread.

This will reassure a homeowner that you didn't just slap some lipstick on a pig to sell it to the first sucker.

Kudos to you for adding value with more than putting lipstick on the pig.  

I would "Put Lipstick" on them and place them all into individual land trusts.

If some tries to smear on some deprecation lipstick and convince you the "negative tax" on a crummy rental is a benefit, run away.Don't forget about depreciation recapture tax.