All houses have roofs, heaters, flooring, kitchens, bathrooms, etc.

Since the original purchase, I gutted the bathroom and put in a new HVAC unit. 

Add bedrooms / bathrooms.

We remodeled one bathroom so far as well.

For example we only do kitchens or we NEVER do kitchens only bathrooms. or We only paint and landscape. 

Purchase price: $105,000 Cash invested: $25,000 Sale price: $179,000 3 bedroom/2.5 bath, new kitchen, tile kitchen, entryway, bathrooms, new fixtures in baths.

Updated countertops in bathroom, exterior paint, new carpet in bedrooms.

This option will allow for a 3 bedroom/2 bathroom unit and avoids the ~$45k in upgrades but will most likely cause the total rent roll for the property to be ~$200 less than projected as a 4 unit.

If we are the ones paying 100% for improvements to the property that creates appreciation (i.e. redo the kitchen or bathrooms), how do we account for this?

New flooring throughout, new appliances, fresh paint, new/refinished drywall, new bathroom vanities, new interior doors, new garage door, new ridge vent, painted kitchen cabinets.