The Trump Book covers it well.Well written--a worthy read on the subject.

updated appliances, pulled up linoleum and refinished floors, added electric panels in units, and added instant hot heat/hot water for units Lessons learned?

Some locations around Houston recommend that owners provide AC especially during the hot summers we have here.Good luckBennie

Do you have not so hot market as in LA? 

So they have the subject property +30k compared to a property that didn't have a cottage.

The market is extremely hot but I have found an incredibly helpful, investor friendly real estate agent that has been giving me great insights on the market and properties.My husband and I have not purchased any home previously so we have options to use a FHA loan, his VA loan or any other suggested financing options.

Calgary and Alberta in general seems to have less of a crazy hot market right now, still pretty easy to find cash flowing properties.

Also take a look at the grading of the surrounding ground to make sure water flows away from the house, not to the house.Siding can hide many damages, if you see patches or cheap siding recently installed, it is time to start asking , what and why.HVAC, how old, how old is the ducts, take a peak in the the registers, how dirty they are, HVAC handler closet, look for mold in this area, the condensate water drain condition and where it goes.Electrical panel model and manufacturer, google it for recalls.Floor carpet if any, I hate carpet because it hide damages and if it is secure you cant pulled it to look under, look for stains or cold spots, that is an indication of a wet spot. specially near baths Kitchen or egress doors.Kitchens and baths, old or new, try to look behind frig and dishwasher, they hide a lot of  water damages and are very subjectable for mold growth.

in hot markets you have to think differently to see the opportunity. 

However, what they don't mention is that month-to-month is subject to rent increases (I confirmed with the leasing office after receiving the letter).