My cost wont necessarily be the same or comparable as I GC my own projects and have trade skills.

Contrary to most business lending, the REI industry has a lot of "non-bank" lenders that provide attractive loans that can lower your cost of capital and improve your profit/cash flow. 

@Jeffrey Holst that is not true, you don't get pass through tax advantages but not all W2 employees can fully use them in the year taken and the K-1 accounting can cost a lot.

Strengthen Your ProposalDevelop a Business Plan: Include:Vision: Your goal of creating a micro-home community.Market Research: Show demand for affordable or small-footprint living in your area.Financial Projections: Break down costs, ARV, and anticipated ROI.Experience: Highlight your previous fix-and-flip and demonstrate your learning curve.Present a Solid Development Plan:What is the size and scope of the project?

But I would charge the extra 3% to cover my costs.

These methods include: Detailed Engineering Cost ApproachDetailed Engineering Cost Estimate ApproachSurvey or Letter ApproachResidual Estimation ApproachSampling or Modeling ApproachExperience or “Rule of Thumb” ApproachIt’s important to understand the differences between the approaches including which one best fits your property and the reliability of each approach.DETAILED ENGINEERING COST APPROACHThis approach compiles the costs from construction and accounting reports to build a report.

These platforms typically have billing policies where you pay a per unit fee per month to the software and you get regular updates and support each month.There are a number of low-cost platforms available that are able to offer you a lower price by passing along some of the costs to your tenants (payment processing fees, applications, tenant screening, etc).

If you sell your property, the tax basis (original cost) of the property for the giver becomes the tax basis for the recipient.

Determining the cost on something like this is only something you'll be able to find out by talking to the city.

I am in this camp myself, as I do this full time.I agree with your point about focusing on long-term sustainability rather than chasing maximum rental income at the cost of increased tenant turnover or property damage.