You don't have to throw in the towel; you just have to learn how to "upsell" your property. The trick to upselling is the ability to take a property that is pretty basic and reposition it in the marketplace as something far greater and far better than it actually is.

Consider this: one third of America's rental housing stock was built before 1970. It might be time for a little sprucing up to even the score.

After you have walked the property and targeted certain areas for improvement, the tough part is deciding which areas warrant your attention and the most dollars. Renovation is not about how much you can do, it is about choosing a few areas to focus on and doing them really well.

"A renovation project should focus on location and functionality. Match the level of renovation to the product type and how it fits into the marketplace." (Andrew Chaban, chief executive officer of Princeton Properties) "Everything should be done on a cost-benefit analysis. Go thro each line item and determine its return on investment. Sometimes simple improvements beat out the newer, exciting and costly alterations."