Account Closed, There's a few levels to your scenario.  

But, I don't have a crystal ball so the best I can do is assume some level of inflation of cap rate every year.You will never be 100% right on everything...you can't.

I never made a solid return there compared to the other properties in Toronto, NYC, Minneapolis, Atlanta and New Orleans ... nor has it been conducive on any level to accomplish projects or business initiatives there.

We weren't advised to add luan to level out the flooring and give the peel and stick a level base to start with until we had already started with the LVP. 

About half our applicants don't have income that meets the 2-3x rent threshold, even with positions in architecture, software engineering, etc. which is an indicator that we're approaching the upper limit of what people can afford. 

Otherwise, for both units, its pretty much new flooring throughout, new kitchen, new bathroom, outside paint job, and restoring porches on both levels. 

As Leo points out, with the leverage you have, at some level of price appreciation your investment will work out ok... but your time horizon needs to be 5-7 years of 2-3k/month if there's disruption in the market.

Otherwise, for both units, its pretty much new flooring throughout, new kitchen, new bathroom, outside paint job, and restoring porches on both levels. 

The downstairs unit is in decent shape, however, the basement & upper unit need some work. 

Putting at ground level DIY $3000, if duct work needed $3500.