I even offer to do some simple upgrades to the unit if they stay.

For the kitchen we need to upgrade to a stainless stove and dishwasher-the fridge is already a stainless french door model. 

MANY RECENT IMPROVEMENTS INCLUDING - UPGRADED ROOF ($30,000.00)-2 YEARS - WINDOWS UPGRADED 8-9 YEARS AGO - 2 WATER HEATERS, FIRE INSPECTION COMPLETED - AND MANY MORE IMPROVEMENTS - BUILDING IS IN A EXCELLENT RATE OF RETURN - BUYER MUST ASSUME FORGIVE ABLE LOAN HELD BY CMHC IN THE APPROX.

I live about 3 blocks away in a small home but looking to upgrade because family growing.

(If fuses then yes you need to plan on upgrading).

My father recently gave me a property and i want to use it to start investing in more properties this particular property needs roughly $5,000 in upgrades to fetch a $1,000 per month.Should I refi the property in six months and use that money as Seed money to acquire more properties?

I rarely ever get nonsense repair requests and when I do I explain why the upgrade/unneeded repair isn't happening so the tenant understands why it's nonsense.

Time to upgrade!

I see this as a major problem for me because I have done quite a few upgrades to the home since I bought it and I would like my potential buyers to see it.

You do want to save money for updates, upgrades, contingencies.Hopefully your rent goes up over time...so that will help your cash flow.