In my case I have decided to do minimal/moderate improvements, keep this building pretty much as it is since I am able to increase the rent quite a bit anyway, and do a repositioning with my next MF investment.

I guess the reason they've captured some interest is because of their increases haha

If you say they are, you are just proving that it is hard to find consistency in CPAs.Actually you may be right because in my opinion  if the expenses (property manager fees, inspection cost for example) belong to 2017, so the income should even though the property manager still holds the money.As I always did all my accounting, I am doing as well the Malta part, and I think I know what to do.

The downstairs is a small grocery bringing in $1000 per month with a scheduled $100 increase each year until it reaches $1300.

@Anastasia Kristina I found a few markets in Ontario and Quebec that have great cash flow, good and constant increases in property value while being stable markets (low vacancy, high rent to purchase ratios, above average population growth).I like Outaouais, Laurentides, Lanaudieres, Estrie and certain pockets of Montreal in Quebec.

Causing my operating expenses to increase, stripping my already tight $100/month cash flow. 

If current Hoa fee plus double the increase monthly Hoa fee is a number you can live with, go for it.

Provide the lawn mower and snow blower, increase rent or add fee.2.

Raising the rent $75 per month, per year, every year is damn steep increase.

You can always find ways to increase your income, but not your time.