In lieu of big TI's I would just reduce rent for the first term if possible.I would recommend pursuing this and see if you can negotiate the price down.  

My parking will be reduced by a 1/3 from what it is now.

The money is actually free if you use it multiple times, but only pay for it once...and when I say multiple times, I mean an infinite number of times, with each repeated use of the same funds reducing the cost of the funds per use.What you have is a goldmine...if you understand how to implement it...in other words, If you understand how money works

Un-paralleled revenue sharing - reduces the volatility of commissions-only income and provides an exit strategy from the business to compensates for REALTORS' lack of 401K and retirement plans.PM me if you'd like to learn more! 

That, in combination with the frequent requests, as well as trying to reduce the rent, is a play on their part to see how much they can control the relationship.

And although there can be plenty of money to be made there, especially if you are ready, willing and able to do some or all of the fix up work, they are a bit harder to sell because, again by definition, duplexes are generally purchased by investors, which reduces the number of buyers interested in purchasing them.

We are projecting to spend 8-9K per door to rehab the interior and exterior of the property, change the demographic to increase the rents to market, reduce expenses to achieve our investment goals.

Track everything you do (you are responsible for) and review your income and expenses regularly to discuss that to hopefully reduce your expenses and increase your income that will make your business grow.Be careful and consistent on what you do.  

With the rents going up at the current rate the buy and hold investors are reducing the inventory.

Now let's look at it from the tenants point of view ... they are renting for $465/mo and can drastically reduce their expenses by buying even a much nicer place ... then why don't they do that?