You are correct hotel underwriting typically has vacancy built in for cosmetic updates but in this case it appears your improvements far exceed keeping the hotel rooms updated. 

They're also focusing on improving roadways and infrastructures to bring in new businesses to that area. https://sanjuanedc.com/another-project/I do advise to look at each cities economic development sites.. they offer a lot of information as to what projects will be coming to those areas and it'll give you more or less an idea as to what city you'd like to invest in. 

Plus, if rates drop later on, your position will only improve.

Continue acquiring properties in promising markets to build your portfolio while keeping an eye on interest rates to potentially refinance your high-interest loan for better cash flow.Save capital to maintain liquidity, allowing you to act quickly when market conditions improve or unexpected expenses arise.

Just that some contracts and “escrow instructions” being circulated by certain gurus provide for it.IMO that fix may come too late… the DOS cat is already out of the bag.

This gives me a good little pushFrom what i've heard, the biggest regret on people's death beds are "I wish I would have" rather than "I wish I hadn't"Mistakes will happen, learn from them and continue to improve.

Keep your budget in mind for quality improvements, check local regulations and manage pricing.

You mentioned the rents were below market rate...if you do the improvements/repairs needed, how sure are you that you could increase the rents? 

On Buy & Hold: They must have at least six months’ worth of operating expenses in addition to downpayment if financing, closing costs and improvement funds if they are upgrading the property.

And there may be somewhat of a combination of site improvements included (sewer/septic, water service, etc, to the MH sites).Then the income approach would be looking at the cap rates, as Roger mentioned.