The quicker you and the Banker can help them close, renovate, refinance and repeat will help them build their REI portfolio, increase their overall wealth and keep buying more homes.  

I would need to increase their rent (be reasonable) to cover the new costs. 

RE is a get rich slow game and there are increasing number of people talking about how difficult it is to retire from your day job even with large numbers of rentals because cash flow is thin.On the one hand there is the Small But Mighty portfolio mentality which I believe is a book in the BP store by Chad Carson.

On the one hand, I can see it as a positive indicator, for example of market health and increasing suburbanization. 

So if someone tells you, it does not matter about liens behind you - it does.There’s one more ; the borrower has increased debt service and when it either turns negative or leaves nothing “in their pocket” they may lose interest in the property, decide to stop paying all mortgages, and put whatever income they can into their pocket until they lose the property to foreclosure or one of the lenders obtains a court order prohibiting such.   

This doesn’t necessarily increase the property’s value due to the home’s temporary status, but it does keep the $1,350 in rental income intact.Refinance, skip repairs on the manufactured home, and instead use the $30k-40k for other real estate purchases.

Talk to your insurance company - depending on your deductible and potential increase in future insurance you may or may not want to put in your own claim.I would also probably consider cutting my losses and getting rid of the tenant asap.

For that year 12k essentially increasing your taxesThen the rental 3 (Negative 15k) is carried over since over 150 AGISo it actually looks like the rentals had a 12k profit overall that year when it was more -3kAppreciate any guidance@John Davey to avoid any confusion for other investors that might be reading this post and @Austin Cheatham response. 

Ensure it cash flows comfortably.Market & Location: Research local rental demand, property values, and any applicable LTR regulations to understand the area’s potential for long-term success.Future Potential: Consider if the property could appreciate or attract quality tenants over time, supporting stable cash flow and asset growth.This checklist should set you up for a solid LTR investment!

The shorter the prepayment term has an impact on increasing the rate.4.