Thanks @Scott Mac it definitely improves curb appeal 

Capital Improvements - I've spent a lot this year improving units during vacancy turnovers.

That being said, consider putting 25% down instead of 20% down as it should drop your interest rate by about 0.5% and make the property cash flow much better.  40% is overkill IMO, the improvement to your interest rate is negligible at best. 

Through my research I’ve found traditional bank financing may be the route to take as they have better structure for exits(less yield maintenance concerns) and loans include funds for improvement.

When my home goes up 30% in value in 4 years, not because of population growth, its because you need 30% more u.s. dollars to buy my house, not because it's actually grown in value or was improved or made nicer.

If you do that, your cash on cash return would be dramatically improved leaving you more funds / opportunity for your next deal.

@Lyle Cooper, Much depends on your adjusted cost basis in the property (your original cost plus capitalized improvements minus depreciation). 

I can just provide the list of all the inventory and improvements that I made for the property and depreciate everything in lump sum.

If you want to build a good portfolio of highly profitable STRs, buying a 3 bedroom or making compromises on size and location when in 6 months you can save up enough to improve both, feels like an early mistake.

.- Limited upside (no sweat-equity)Pros:- No improvements are needed.- More longevity (Easier modeling of CAPEX)- More lucrative/easier to rent.Did I miss anything?