I am in investigation phase for a garage to unit conversion for a 7-unit multi in San Jose, CA.

Do you want to give this one a chance or, start fresh?

But tenants will have nice fresh public water now.

Police came, investigated, took him away in a squad car, then locked the apartment up. 

Please investigate further and don't just believe a mortgage loan officer as they may be biased just to close your loan.

I'd do a fresh white to brighten it all up. 

Not only big ticket items to consider for down the road (or immediatley if needed, like new HVAC), but all the smaller things that might be needed to get the right tenant (ie, fresh paint, small updates).I'm in Raleigh as well.  

Thank you all so much for the replies, this really helps open up some doors I haven't investigated yet.

I only know that you will part with your money quickly if you don't do substantial investigation.

This saves you the cost/headache and gives you a fresh start.