I spent a lot of money adding new laminate, fresh paint, and a new water heater when I moved out, so the property is in good shape.

I do only have 1 section 8 tenant and that was in a freshly rehabbed property with new A/C and is also managed by a PM so I can't say how the inspections actually go, but that is what their requirements checklist states.

That process is very simple and can cut your cost from ~3500 (1200 sf) to little over 600.Changing fixtures in the kitchen and baths can boost appeal as well.Finally, of course a fresh coat of paint on the walls that are a good neutral color.

Our plan is to update the place so that it looks fresh and clean, but no granite/SS/hardwoods, etc.  

I guess I am wondering how most of these partnerships work for a fresh beginner.  

not to sound like a crunchy granola here ...my three favorite tenants have been fresh out of college and employed but other landlords didn't want to take a chance with them.

But, look at that scenario with fresh eyes, ie: would you or a potential real estate invester purchase this specific house with ADU at the current/expected future market price?

Our new tenants are clean and awesome- we have through wired smoke and carbon monoxide and when an inspector or potential tenant walks in it is fresh, clean and beautiful.

I have a small farm outside of town for the weekends and another property to develop on top of a mountain with endless, fresh water running out of the top of the mountain.

Could use a fresh coat of paint and some gardening.