I like to be as detailed as possible on the lease, and we continue to upgrade and improve it as we go.

So, that is a calculated amount based on what you paid the state, plus additional interest, assuming there have been no improvements. 

We want to sell our biggest home in hopes the cash flow can be improved by splitting it into 2-3 homes versus one.  

To get to this level, you could either pay down the loan through payments or make some improvements to the property that raise the value or wait for the market to appreciate on it's own. 

Purchased for $193,000 in 2014 (VA)IRRRL/VA to VA for 185,000 in 2016 @ 3.625% / 30yr (Bank paid 100% of the fees)Currently owe $175,000Realtor thinks we can sell pretty quick at $234,500Market seems to have improved quite a bit in the last few years.

Experienced and decent borrower too who actually got a CA bond to pay for the horizontal improvements. 

I always wanted to do it, when I was living there, it would improve the property value, but should I do it while its occupied?

Personally I would not send a letter or an email .i would drive right over there immediately walk rIght up to the door and tell the idiot to hIs face to lose the dog or he will be evicted then I’d hand him the quit or pay notice right then and tell him to improve his conduct or him and Fido will be whimperIng on the street . ..or you could kindly send him an email bake him some fresh sugar cookies and ask him if he was willing to compromise with just 3 pit bulls in the house

Note we understand that Gladstone has an registration and inspection, so does Independence and we learned today that Grandview has had one since 2009 that they have not enforced and they are having a meeting to improve it, and to create HUGE fines to enforce it.

You need boots on the ground to drive by a property and see if the street and block is ready for improvement.