It's fine as long as you use the right type paint/stain:http://www.flood.com/wood-care-solutions/product/1...

The key is the speed of money...and having a system that is both repeatable and self sustaining.  

If your property can sustain the updates I think you should go for it.

To have a business that can last one must have sustainable practices.

Our units will sustain damages or not depending on the quality of tenant we select, the terms of our rental agreement, how well the tenant understands the terms, how often we inspect and how swiftly we enforce the terms of our rental agreement if the tenant does not abide by the rules.

Good realtors are very pragmatic people whose talent should be to figure out reasonable solutions to situations like this. 

I don't really know the cost of installing cans, but since it will require rewiring, I expect it will probably cost ~$500 vs <$100 for pendant lights & using the existing wiring & touch up paint.I was wondering about some sort of mixed solution too, though I'm still unsure if ROI will justify the increased in cost.

In my case he was able to give me much simpler solutions than I was expecting to have to install. 

As i work in the city where most of the people dont even know about bigger pockets so there is no problem in announcing to get a better solution

There are good reasons for real estate to appreciate faster than cost of living in ways that are in some way sustainable.