I use standard market PM rates in my underwriting, but I also would not work for those rates but it is fair compensation for the work.I typically use vacancy of 5% not because I have ever had a unit that had that high vacancy but I do not have a no payment category and I want the underwriting to be conservativeon the opposite, your rate is a bit high and your appreciation rate and rent growth are modest.overall, seems like a decent attempt at an analysis.  

I guess my questions that still remain: Did the city in theory have a lot of leverage in these negotiations after the second failed attempt at rezoning by the developers? 

Non paying tenants(as a newbie I did no screening), dead tenants, Silly fines from the city for nothing, attempted robberies where I ended up with the cops pulled guns on me. 30 recently released convicts as neighbors for a while, a jacked up 7' tall transvestite call girl/drug dealer was my least favorite neighbor.

You have fixed cost so it is better to get some bodies in there so you can get market rent later. 

As far as I know, they no longer do arbitrage after losing a significant amount of money attempting to make it work. 

 I am in the same boat of attempting to get my deposit back.

I'm afraid they will squat if I attempt to get them out. 

No attempts to "pull one over" on anyone here--in fact this deal and partnership idea were brought to me by the other would-be investors (including the deal finder), because they're interested in making it possible for my wife and I to move closer to them (currently living in different states).

You started with one listing and ended up with a listing and a handful of new buyer clients.Trying to market to buyers without listings is like trying to chase down bees one at a time in an attempt to get honey.

I like that you came on here and at a minimum attempted to defend your position.