Example of a good answer: I can show you how project management can decrease your costs in the long run by budgeting specific resources at the right time, and how long term planning can increase your productivity over the course of the long and short run. 

Rents can be increased probably 100-125 per unit.This is acceptable to me.However, buyers refuse to show any proof of income and DD period is over tomorrow.

Very tragic but it did increase property values.

For mom & pop tenants, the landlords will not typically waive these pass-through expenses all together, however, you may be able to limit the impact of the increases.

Today, being close to the trendy nightlife and popular restaurants located in the heart of Downtown Tucson is a huge draw.

The only other way I would invest out of town is to research the area and have friend there that is willing to use to do whatever is necessary and call you on the phone daily to give you an update.You know when a particular market is doing well to see if the population and jobs are increasing. 

I want to increase my passive cashflow. the thought of being able to BRRR it & also receive cashflow was/is very appealing to me.

After you've completed the work, you will likely have increased the value of the house so you'll have some forced appreciation.

Do you think this is positive for a rental investor as higher rates may make ownership costs higher for some buyers thus increasing rents?

I would try to find a more year round type vacation spot so that you can decrease your vacancy rate and ultimately increase your profits.