but my husband has 25+ years of construction experience including a specialty in custom cabinets and I have 12+ years of business experience/degree and currently hold a position as a Business Intelligence Analyst in the IT division (I'm a  TOTAL Geek!!) 

The kitchen was renovated with new 42-inch cabinets, stainless steel appliances and granite counter tops.

In the first one you just won't know some things, like to purchase cabinets way in advance, or how to schedule your subs, or to know when you're being taken for a ride.  

If, though, when you say "updating" you mean that you are gutting the interior of the unit, putting in new cabinets, new counter-tops etc, then I agree that you have a renovation/improvement project and the windows would be capitalized as a part of that project.

Tenant calls and says there's problem with water dripping down from the faucet in to the cabinet.

Or to get prime rental rates I should do a nice rehab with sterlnig silver appliances, and good cabinets?

I have several houses now and my filing cabinets are getting a little stuffed.

Spray before installing flooring, cabinets, etc. 2.

If it's that easy, you should have done it long ago, throwing in some cabinets and a work level surface.  

When you consider your reserves for the replacement of floors, cabinets, fixtures, roofs, DHW, HVAC, etc., you will find most residential properties (1 - 4 units) will fall into the that 40 - 60% window over the long-term.