Also, if they are improving the efficiency of most appliances, would the future costs not be deferred by the future savings of such appliances?

I understand the desire to make all the profit and to have a big multiplier by improving the whole area.

I think once we get into spring it will improve.

Rehab it and improve it's value.

And maybe some other minor improvements.

Can the staging be improved?  

Maybe have your own home improvement co.

Also have no experience in construction and therefore lack the confidence to make an estimate on those costs when evaluating properties. 

The units were also being upgraded (albeit at a very slow pace).So, as you can imagine I was super excited to find a deal where we could not only improve management, but also increase rents and not have to spend a ton of money to on CAPEX and repositioning.

Just yesterday (before discovering this mess) I assured her that I felt confident I could close the deal with her if she didn't get the loan.