Also, I found 2 ideologies regarding such development projects: Use one GC for the entire development or use that GC only for crucial trades such as foundation, framing, roofing , external siding, etc. and use sub contractors for finish and interior work to reduce cost.

Whether to build on your lots now or wait depends on a few things: construction costs, rental demand, and your financing options.

They also tend to offer good cash flow relative to their cost, especially in areas with high demand for affordable housing.

My question is, does anyone have a negotiation equation or strategy to get the price down, considering these costly repairs.

I BELIEVE this credit would be treated just like covering buyer’s closing costs. 

- Run your numbers (including all operating costs including property mgmt) based on current rents in AS IS condition and renovated.

Keep in mind the potential for higher renovation costs due to older properties and the local landlord-tenant laws.Good luck! 

In my opinion, since the tax code is open to interpretation, I interpret as much of my costs as repairs unless something obviously falls into the definition of asset.

How much does it cost to buy down rate per %?

Not expecting cash flow, but at least my housing cost would be similar to renting.