Kitchen has white laminate in okay condition, kitchen and bathrooms have wallpaper in bad condition, one bathroom has slightly rusted light fixtures, the grey wall paint is either gloomy or chic (you choose), backyard has patches from the dog, master bedroom has a weird wood inset, garage has a big dent in the dry wall where someone's car hit it, Where would you invest to make it feel more clean and modern?

Sometimes they can be more work, but if you do it right, you almost can't become a bad landlord because the property has to be in great working order from the closet door closing correctly to the bathroom outlets working perfect with the GFCI, to the important things like no roof leaks.  

And replacing a tub in the bathroom.

Every living unit must have at least one (1) bathroom which includes a flushing toilet, lavatory/sink and a bathtub/shower.

The upstairs unit needs some light rehab (kitchen and bathroom) and the exterior of the house needs paint and a roof sooner than later.

The house is just less that 1800 sq ft and needs all new floors, both bathrooms and kitchen update. 

While local codes may vary, generally speaking, save for the need to meet egress in sleeping rooms and ventilation in bathrooms (which is often met with fans), using fixed in lieu of operable windows is an oft utilized practice.

ARV: $195KRental: $1850/monthRehab: (Carpet, Granite updates in Kitchen and bathroom, fixtures, and landscaping) $22,000Cash to take over loan: $23K+ClosingInterest rate: 4.625%Unpaid Balance: $142KPITI: $1650 approxPrincipal: $258Interest: $538Escrow: $850Maturity Date: 08/2040Looks like 23,000 plus closing fees, plus 22,000 rehab, I would be out $45,000 approximately, no way someone going to give me $45,000 down to owner finance. 

Aesthetically and at face value, this house looks nearly identical to the other renovations - same amenities in the kitchen, similar finish in all rooms, similar bathroom remodel, similar yard/landscaping, same lot size, all one story etc.

Kitchen and bathrooms get expensive quick.