1) On the first floor I've been upgrading my tenants each year and have gone from $1200/month to $1300/month with better tenants.2) I took the middle floor from $1100/month to $1400/month with a fairly big rehab that improved the look and the space considerably. 3) I am currently doing some small renovations on the third floor, mostly paint and flooring to improve the space.

@Katie Jewell If you're doing a physical value add that includes upgrading the unit interiors, then I'd suggest implementing the rent increase after you upgrade each unit. 

Here are some bulletpoints of our “wish list” and some items that we know need to be fixed:- bathrooms: 3.5 bath - two definitely need upgrades.

Purely cosmetic: kitchen and bathroom upgrades, paint and flooring.All-in I’m at 60% of ARV.

One immediate thought is to submeter, another is to slowly do cosmetic upgrades and increase rents. $595/unit seems low for rent, but then again I don't know your area.

The property recently had $25,000 in upgrades and repairs.

Unlike Americans, Germans do not continuously upgrade.

I recently helped a client get 200K higher evaluation in 8 months without doing any upgrades. 

You can live in half, upgrade with sweat equity, and move out when you have saved more Capital for your next purchase.  

The handyman's side has been upgraded by him.