So lets say you own a second position loan on a property in Georgia that is performing, but the first was non-performing.

I have no part in it other than owning the property and performing property maintenance.

If  you are in the 20% range, you are better off going to the casino and putting all of your money on black and seeing what happnes.Since you are out of the area properly calculating cash on cash returns can be difficult because you have variable expenses to calculate. 

Even if it was a low performer (which it isn't), isn't it part of the game to reimagine, see the potential and make it a success? 

When you have several rentals the other performing rentals cover everything and you don't feel the stress from the one nonperforming rental.

It performed well last year and has a proven track record.

Quote from @Matthew McLaughlin: Is this a market you believe will perform well for the next 10-20 years?

(I am getting pretty tired myself sounding like a broken record).Direct mail marketing works SO poorly, you need to send THOUSANDS of mailers, AND you need to send these thousands of mailers SEVERAL times to get a deal.So:BECAUSE the performance is SO low you need to send thousands to COMPENSATE for its poor performance AND hit the receivers several times BECAUSE the performance is so low to get a deal.Conclusion: "Direct mail marketing works"WHAT THE HECK?!

Do you perform regular preventative maintenance to avoid emergencies or are you more reactive?

If you have a 12-month history of the property's performance, you may be able to get some wiggle room with more local banks for it.One thing that may impact the lender's ability to lend could be the Debt Service Coverage Ratio (DSCR), but as long as the property cash flows well then that shouldn't be an issue.