The comps in the area for MF's were at minimum 550k.Since purchasing the home there have been many updates to it to include a fully updated 2nd floor unit, updated bathrooms on both floors, new kitchen on the first floor, new roof, new driveway, new paver patio, updated front porch.

Based on my experience with engineered hardwood, I doubt that you need to remove baseboards.

It DOES NOT require a full gut rehab (rehab could consist of new kitchen, new bath(s), windows, flooring, paint, etc.

We also paid them 2,600 for the cost of the flooring, which they have mostly completed. 

Hello, I have a two-unit SFH (first floor unit & second floor unit which share a main entrance but have separate private entrances once inside the house), located in California (I know...).

Another great example is flooring.

Loud neighbors, a poor location, and poor floor plan could mean a constant uphill battle to keep guests happy, and likely a lower ceiling for guest review scores.  

The property in question has commercial space on the ground floor with two, 2 bed/1 bath units above.

I usually spend my time, if the seller is present, keeping him/her out of the way if needed, pumping tenants for info, taking measurements for room sizes and drawing floor plans with doors and windows and noting appliances and taking pictures.We look for value add properties that are in decent structural and mechanical condition (except for one deal that we got really cheap).

New hvac, floors, paint, new counter tops.