To answer your questions1) I think that with the area especially near the local medical school and looking at comps in the area another 10% with minor improvements (Paint, minor bathroom/kitchen changes)2) Great question I did the 70% rule minus rehab for that price.

Overall we agreed to pay off their back taxes and let them stay in the property for an unspecified period of time (we estimate 2-3 years at least) for $450 /month and they cover all repairs and improvements to the property along with their own utilities.

Minor cosmetic improvements.

Minor cosmetic improvements.

Then most large home improvement stores like Lowe’s, Home Depot, etc offer free installation on carpet if you buy from them.  

As a landlord myself, I appreciate the surplus of investors coming in and improving the neighborhoods here with flipped homes that would otherwise continue being dilapidated properties. 

You can also fund improvements, like an FHA203k, but you don't have to live there & can do a lot of the work yourself.  

Also, if they are improving the efficiency of most appliances, would the future costs not be deferred by the future savings of such appliances?

I understand the desire to make all the profit and to have a big multiplier by improving the whole area.

I think once we get into spring it will improve.