This is common practice in any state I have ever done business in

Some improvements to the property are:Exterior steps and walkwaysWasher dryer added in all unitsNew stainless steel appliances: dishwasher, microwavehood, fridge, stove  (all the old tenants owned their own)Flooring for the garden unit, refinished the other unitsGranite counter topsPatch drywall and fresh paint on walls and trimUnexpected items list to name a few:Foundation cracks - fixed nowBathroom vents not actually venting - fixed nowRoof leak patch - heavy rains following closing made it apparentAttic plumbing came apart in the walls - previous contractor may not have properly glued?

You can practically walk to Glenwood South and the Warehouse district from that parcel. 

https://www.azag.gov/sites/default/files/sites/all...If you're still unsure, your best bet is to speak with a local tenant/landlord laws practicing attorney.

I would also add that you should look at what the market (nearby competitors) is doing so that you know not to under/over improve. 

I am just starting out in REI and starting to practice looking and evaluating properties for sale on realtor.com.

Your P & I would be lower resulting in improved Cash Flow.3. 

Has anyone heard of or tried using the REEL program to fund any improvements on properties?

I would save up the couple hundred a month and use it to improve both units in a year or 2.

Rather, your wealth accumulation can come about by buying under market to begin with, in areas that should keep improving in value, and which are then 100% paid off by your tenants!