I have started to run across a lot of Fannie Mae properties that have been classified as "Improved Properties".   

If you replace a water heater you have to take the cost of that and compare it to the value of the plumbing in the building, to determine if it was a repair or improvement.

We have made various improvements to the units and our gross monthly rent is currently $1,885 which puts our cash flow around $800 per month.We save all of our cash flow and keep it in a small business checking account. 

Sold it two years later in a rush (after 30k improvements) for 340k after one week on the market!

As Jon said, they could copy the key, or case the place to steal something...if they used a hand truck to take out the stainless steel fridge or washer/dryer, who would stop them if they had the key?

MFRE communities have reputations, and if this property has a bad reputation, it will take a lot of time and money to change it, even if the surrounding area is improving.  

I also realize that I'm probably losing out on some good prospects by making them jump through so many hoops, but this has made my life way easier.I'm curious if anyone has done something similar or has any tips to improve this?

I suggest you try to change your deal to a Sub-2 and sell it, your financing any part of this with an owner occupant kicks in a look at the Dodd-Frank stuff.You can have issues with an L/O or more with a S/L/O neither a lease nor an option allows you to make improvements, make repairs, act in legal matters in getting permits or tax matters or in answering citations.

Equity established isn't taxable until it's sold and that can be deferred.Buying no or low equity deals means sharpening your pencil, looking for value elsewhere and allowing time to improve your position.

Go to the neighbors, if it is a gated community, ask the security guard, and then there is also going to the home improvement stores and asking around or getting there first thing when the contractors and trades people start their day.