This deal aligns with my strategy of adding value and achieving robust returns.

Some considerations (in no particular order) are: What return on your equity are you currently getting?

You used to easily be able to do this with 2 unit properties, but with prices and rates today it's hard to make this work anymore, unfortunately.

Although I find competition for what I call investment grade parks is quite keen.. so returns are more in the MF space.. when you venture out east from the west coast or look at low end parks returns are higher but management is quite intense.. as our dealing with some pretty scruffy tenant base.

I care most about the Internal Rate of Return (helps me determine how long to hold a property), the cash on cash return (helps me decide why this investment vs other options, and it also takes into consideration appreciation of the property!)

Way better returns on the cost seg than you'd ever cash flow from an LTR. 

Many desirable neighborhoods that offer a consistent predictable return on investment.  

Any taxes not owed, a seller merely file a tax return with the state, just like any other tax returns filed for extra taxes a government has with held. 

Investing this amount in passive deals might not provide immediate income, and you could end up waiting years to see returns (similar case in most investments.) 

How do you determine a reasonable target return?