When you are starting out, flipping, and taking a more active approach to building Capital is usually the best strategy. 

Wait till you have more capital reserves.

Things like vacancy, collection losses due to non paying tenants, turnover repair costs and unaccounted for capital expenditures probably surprise many.

  $100/month free cash flow on $150-$200K of capital invested is actually worse than horribly. 

You have no control over the capital improvements or the value that tenant improvements are supposedly adding to the property.

If the work is done after the tenants are placed, it is already in service so you would begin depreciating it immediately.Without looking at the the costs of replacing the siding with vinyl (and other costs relating to the property), I am going to make the assumption that the work does not qualify for any of the safe harbors under the repair regulations and thus would have to be capitalized. 

He brings the capital I bring what I’ve been studying up on.

If positive you could redeploy that capital into another asset.

Capitalize on all of the free resources this site has available at your disposal.

If you are still within the 2 in 5 year window and you sell it, there won't be any capital gain.