I am slowly adding value by doing small improvements such as upgrading from a swamp cooler to central air and improving the interior cosmetically.What was the outcome?

I do have to admit I am going to be learning about renting out this house that I've put A LOT of upgrades into. 

@Richard Lovering did you just upgrade the systems (plumbing/electrical) prior to renting out or you replaced the systems?

Invested around $4K in some minor upgrades and improvements and within the 1st 2 months generated almost $10,000 in Revenue!

You could easily use those funds towards more cosmetic based upgrades that will make your house way more appealing to the buyer.

And technically, updated units will normally trade at a higher GRM.If your ability to close loan, or contest appraisal has closed, a couple recommendations for future refi's/projects:- Have before and after pictures- Typed out list of all items upgrades you did- Cherry-picked, but realistic, comps to feed the appraiser. 

My broker says that we would have to ‘upgrade’ in order to buy another VA-backed property in Coloraos Springs.

It was upgraded some time in the past, but there was no permit pulled for the work.

I use eco-tax.com to prepare my tax returns.

If you spend the money on upgrades, finding new tenants and all the holding costs involved how long would it take the higher price point to recoup that?