This followed after a 2X overflow of a tenant on a first floor that flooded his bathroom using a portable washing machine and flooded the basement apartment.

It's going to need a new roof here in a few years, and new flooring in both units. 

A fresh coat of paint can do wonders along with cleaning the carpet or using something like rejuvenate on laminate floors.

ie, wind damages the roof and that lets in rain that damages sheetrock, floors, furnishings,...   

The tenant fails to pay their last month's rent and leaves the place needing new flooring and paint.

So take a floor for yourself and add a kitchen. 

We do lower rates, and I'm curios if others have run into a "floor price" below which you just get problem guests.

The floor of a deal killer has no bounds, you could be wrecked for eternity if it's a material deal.

Through your local bank that you are using, are you reapplying for each new home for a seperate construction loan or are you setup as a credit line with them and just submit a new budget for each new home 7 mil credit line  ... new budget for each plan that has been pre appraised in the MAI at the beginning of the project.. they did have to update the Mai last summer but again did it at their cost not mine.. banks have to paper their files.. even though we are selling the same floor plans for 100k more per plan than the original numbers came it at and bank has been paid and has all the closing statements showing this data..

Get on the ground floor and start leaning.