Over-improving too early can eat into your returns, especially if the extra $50k doesn’t directly boost rent or appraisal enough to justify it.

But that’s a big jump, and unless the units are already in top shape, you’ll likely need rehab or upgrades to justify those rents.With just 5% down, your monthly payment will be tight at current rents.

In other words, does the higher cash flow justify the added management complexity and long-term maintenance exposure of a park-owned model at this size?

I also look closely at the note’s seasoning, loan-to-value, and whether the yield justifies the risk.

Nothing fancy, but proper updates that justified higher rents.

If your return for investing in another property is greater than 8.5%, than it would be beneficial to invest rather than pay off the debt (would want a sufficient cushion above 8.5% to justify the added risk and work of investing in another property vs simply paying off debt). 

He took 56k from us, justified it and only pulled permits.https://www.linkedin.com/in/jeffery-beach-3bbbb1170/https://twitter.com/jeffbeach75?

If the returns weren’t high enough to justify the extra management, shifting to long-term was a smart move. 

They must add significant value to justify the work and to allow me to extract my initial investment.  

Maintaining proper records is essential in case of an audit, as it allows you to justify and substantiate your deductions and effectively defend your position if questioned by the IRS.