It shouldn't be the make or break aspect of your investigation - things change, neighborhoods improve - but it can give you a good jumping off point for which questions to be asking.

If your rents are the same as those properties, then it calls into question the value of your improvements.

I can not think of any instances (well, except for if you are on the unwilling receiving end of an eminent domain claim I guess) where improvements to the immediate surrounding of your Investments hurts overall returns. 

Rerenting the units requires time or expense to a PM and there is also improvement expenses to make a unit rent ready (paint, carpet, etc.) 

And, my partner is out of state and will be doing nothing but supplying funds and obviously giving the ok on any purchase/expenses/improvements, etc. 

My options are to either get financing at 20% down, or pay cash and do the rehab to get higher appraisal and then finance at after-improved value.

These things suck but tomorrow is another day . these trials  are valuable learning tools and every obstacle in the path can lead to a better understanding and improves your skills .  

In fact, if the math is done right and it's cashflowing real estate you are  buying, your DTI should improve with each acquisition.

Don't Over Improve Your First Flip3. 

Sure you want to improve the property but what’s cash flow on that unit?