Rehabbed the units and added more parking What was the outcome?

Search for "Accessory Dwelling Unit" in the PDF and you'll see what I'm referencing.

If the repair process requires painting the whole thing, which it may need to look good- I'd optimistically put the lifespan of a professional/specialized 2-part (epoxy or urethane) tub/surround (or tile paint) etc- paint job, with above average prep work at ~3 years.. a "high quality" tub respray like this will cost just as much as a brand new tub, and touching up/blending a spot repair is specialized, expensive work as well. but yes I agree with the other replies either way -(unless, *perhaps* there is already easy access from behind etc to get to the repairs and inspect flooring etc without taking tub out)- it makes sense to rip it all out so you can address any potential water damage, and overall there is no reason the resulting new unit shouldn't cost aprox the same ballpark as the repairs .. and new of course will look much better with a much longer lifespan. 

Are you planning on renting out all four units or living in one?  

Lumber market has me on hold at the moment, but when that returns to a somewhat "normal" level I plan on getting back to this project.

That kind of water level should have been wicking up the walls. 

I am very new to REI and would like to know if this is a great opportunity to buy in an up and coming area or if the residential properties will negatively impact my ability to rent out my other unit.

There was a fire escape staircase for the upstairs unit that was made with wood( not metal that was about to fall apart.

Multi-unit and MTR/STR (where allowed) can help counter that, but otherwise it's quite speculative.

Think of it this way - you have two communities with 1 bed 1 bath 900 sf units.One has a HOA fee of $350 and another identical is $650 - which units will have higher valuations?