With the remaining funds  i would make some basic cosmetic improvements to the side I currently live in such as flooring, paint, etc.

And we get closer to what people talk about as "passive income" (fyi, self managing has never been totally passive for me as I am pretty hands on shoveling snow and painting etc)....I know for me I basically develop a working relationship with the property and the people within a year or so... from knowing the sound of the sump pump working correctly to knowing the proclivities of the tenants. 

I found some old knob and tube wiring in the basement; saw a good amount of asbestos insulation around pipes and some lead paint in the basement.

I refuse to touch another house again, my last house I spent less than an hour of my own time "rehabbing", I hung a mirror, replaced a lightbulb and touched up some paint on a door lol. 

what about lead paint or asbestos concerns?

You can't really paint the scenario with one brush - lots of transactions are different.

Caulking cracks and painting is something you can do with your cash flow.

The 10-year treasury spike post-election caused many question marks in the market, but as the picture of what the new administration will set forth is painted, market sentiment will become more concrete. 

What paint color is in Pic 5,6 and7? 

Interest, water bill, cable billelectric bill, mileage, lawn cutting, paint etc...It is a business, whatever you spend on it is an expense.