Condenser tucked under the eave in a narrow side yard - would you leave it there?

Mine is in a similar spot, tucked between the garage wall and a hedge, and I put it there mostly beacuse I didn't want it visible from the patio. First winter I learned the hard way that tight spots collect junk. The hedge dropped leaves into the top of the coil and the unit started tripping on high head pressure, which I only figured out after weeks of scratching my head. Now I rake that little pocket out every fall and it's been fine for three years.

The overhang is the part I'd actually look at harder. A foot above the fan isn't much if the unit is pulling air down and over itself, which most do. Mine has about two and a half feet and you can feel the warm air bouncing off the soffit on a hot day. If you can stand in front of it while it's running and feel the discharge air curling back toward the intake side, that's your answer. Service room is the thing I'd move it for, though. Mine is close to the wall and when the tech came out last spring for a checkup he complained the whole time about getting his gauges on the service valves. If you can't comfortably get a wrench on those fittings or pull the fan motor out someday, you'll regret it. Moving it now before the lineset is trimmed and the pad is settled is way easier than moving it later.

I'd push back a bit on the worry here. My 12k unit has lived under a deep porch overhang for six winters now and it's been the opposite of a problem. No snow dumped on the coil, no ice sheeting off the roof hitting it, and the shade seems to help it cycle less on hot afternoons. The key thing I did was give it way more breathing room than the manual strictly asks for, like three feet up and open on two sides, so the warm air coming off the top has somewhere to go instead of curling back down into the intake.

The one foot of clearance above the fan is the part I'd honestly think harder about than the fence gap. That fan is pulling air through the coil and throwing it up, and if it's only getting a foot before it hits soffit, some of that is coming right back down. Even if it seems to cool fine today, you'll notice it on the first 95 degree week when the unit is running flat out. Since yours is a fresh install, this is the cheapest it will ever be to slide it a few feet down the wall and give it real overhead room. I'd do it now rather than spend next summer wondering.

The overhang itself can be fine, but watch what drips off the edge of it. Mine sat under a roofline for one winter and the meltwater coming off that lip landed right on the coil and froze it into a solid block. I screwed a short run of gutter above the unit the next spring and that solved it completley. Snow drifting in from the fence side was the other surprise, so if you get real winters, check that gap after a storm before you call the spot good.

I'd question the claim that shade makes the unit cycle less. The heat it's dumping outside is coming from your house, not from sun hitting the cabinet, so a shaded condenser runs nearly the same as one baking in the sun. My old unit sat in full sun for years and never acted diferent on hot days compared to the shaded one I have now. What actually matters under an overhang is wether the hot air has somewhere to go. Mine dumps into open yard air, and even then I notice the grass right in front of it is warm on long run days. Squeeze that discharge into a gap between a house and a fence and it just keeps reheating the same pocket of air.

One thing I'd check before deciding either way is what the installation manual actually shows for that exact model, because Mitsubishi draws seprate minimum distances for the discharge side versus the coil side, and people routinely measure the wrong one and think they're fine. I did exactly that on my own install and had to shift the pad six inches after rereading the diagram.

The other thing with a narrow slot between the house and a fence is that it can act like a sound channel, so the hum carries straight down that gap and seems louder than the spec sheet number suggests. Mine sits a few feet off a fence and I can hear it from the back door in a way I never coud from the front, which nobody warns you about when you're picking a spot for looks.