I will have to pretty much gut the house and apartment both and start "fresh".

I was fresh out of college working as a commercial real estate analyst.

the Realtors Associations or WinAIR have a Commercial contract , they spend lot of resources fine tuning the contracts, having a attorney draft a fresh one doesn't seem like the best option to me.

Tile is dated but he has it freshly painted and the carpet finally got to the point where he replaced it.Beyond that hire an inspector to check all the major systems.Note - Unless you find a smoking off market deal I would not expect to get a high cap rate in Phoenix right now.  

I'm a block from Pete's fresh market and Walmart which is a huge plus too.

That's where I'd focus my exterior budget - good gutters, good lighting, fresh paint, and flower pots (or equivalent landscaping) flanking the entry.

...It will only be expensive to do that if fresh wire with grounding conductor has to be put in.

Being fresh/new to all this i'm not sure what's "standard" or even if there is such a thing.

When I say updated I mean newer vinyl flooring in kitchens and baths, fresh paint if needed, newer appliances, and pergo flooring.

I began doing renovations on the vacant units, completely gutting them and starting fresh.