so we can get a better idea of how your renovation dollars were allocated to maximize value. i.e. 

But you can allocate the cash in any way you want. 

Losing money in equities happens to people with an inadequate asset allocation, as they make the mistake to sell during a downturn. 

most importantly you are missing vacancy allocation.  5-8% depending on the area?

If you invest in apartment buildings and maintain conservative underwriting practices by purchasing for cash-flow, securing long-term financing & allocating adequate cash-reserves, you have positioned yourself well for any recession.

Assuming everything goes to plan, and the long term lease is secured, I intend to allocate 40% of the cash flow to a vacancy reserve and the other 40% into making the 2nd retail unit more marketable.

Just a quick look, seems people on BP seem to allocate anywhere from 20-25% for vacancy, maintenance and capex.

Use the 50% rule, which is a more realistic estimate of expenses, and try for positive cash flow after allocating 50% of rent for expenses.

My advise is not to skimp on using your advisors.From your Accountant you will need advise on - how best to set up the business (new tax laws & state tax laws may influence what is best)- how to price your quotes (how to allocate your costs, both fixed and variable)- what are the costs of different scenarios such as employees vs subcontractors, material costs in different purchase options, etc.Attorney- As tough as it is to think about, you need to prepare for the time that the business needs to be dissolved.

I'm helping another client right now that is doing a 1031-exchange with $10M in proceeds from a sale, and she's looking a similar dilemma -- how do you allocate your cash.