Good to discern on this topic rules (of the HOA) and laws of the local community, if the local laws allow it but the rules or CC&R of the association do not and you signed off on those rules then it is on you. 

I think it is an incredible gift to be able to discern those types of trends before they happen.

Not doing anything would probably work in the the suburbs or the outer lying districts of the City like the Bayview, Vistacion Valley, Hunter's Point, but I'm guessing that @Tyler Zanini lives in a nicer neighborhood of San Francisco where it really does matter how the bathroom looks because prospective Tenants searching in these neighborhoods have a more discerning taste when finding their next home because they can not only afford to, but will also pay a higher rent for it.

Just be sure you keep a discerning mind as you explore. 

On the surface, they seem like a good way to create annual cash flow.For those who invest in REITs, how do you go about discerning which ones are good and which ones are not?  

Starting off, its a good idea to know your areas.How do you discern if a house is inherited or not?

Read the lease agreement with a discerning eye (as I did not until it was too late), and look for those pitfalls or loopholes that could have you at the tenant's mercy.  

Professionally and personally, I value discernment, discipline, and hard work- and from the service side of this business I cannot foresee handling the risk that would make my skill set feel like it's being challenged any time in the immediate future.

I received some calls, attempted to discern it the lead was motivated or not.

Also make sure the way you're discerning the current value is correct - good comps in the area sold in the last 6 months within a half mile, etc.