Unfortunately, Covid decided to change my plans, and I made the decision to hold off, in hindsight it was a huge mistake and no one could have imagined that property values could have increased at such a high rate.

A lot of lenders used to apply 35% for expenses, but in the last several years, the numbers for supplies, labor, utilities, taxes, etc… have increased significantly.Also take into account the age, occupancy and how has the property been maintained, this will affect the expenses too

It is essentially the last town before the pass.Regarding what @Lisa Marie said, there are is a ton of good info in there but for your needs, you need to increase the cost to clean.

Would the value of the remodel increase the rents or the selling price that would out weight the cost? 

This equity capture can increase your net worth big time.

The median home value in Phoenix as of April 2023 was $368,657, which is a 23.5% increase from the previous year. 

Under either plan, do they do rent increases over the 3 years?

You could restructure the contract to increase your protection, but the seller won't like that.

All of these small details can increase value and bring buyers for zero dollars. 

This means that not only do we lose the unpaid assessments, but we may also owe the management company the continually increasing pile of late fees.