The risk there is that it sets a precedence for us to reimburse them for any uncontrollable event that results in a loss in revenue. 

I feel as if this investment might be a gamble with this open permit, considering it most likely has to pass inspections before the permit is closed.

You never know what the future might hold, and you need to be ready to pivot in the event that an uncontrollable outside force like regulations change or you need to sell the property due to some unforeseen circumstance.

I feel as if this investment might be a gamble with this open permit, considering it most likely has to pass inspections before the permit is closed.

Of course, you can also just gamble and go with the cheapest PMC, but you'll usually get exactly what you pay for.

but in my view it makes a relatively "safe" investment in cash flowing real estate into a gamble on appreciation.    

So as far as the percentage to compensate them - that really depends on who is doing what and for how long. 20% of a deal that will only get $10k of profit at the end isn’t very attractive - but that’s the gamble you take with equity.

Heck, it would be tough with under 50 units because those are controlled vacancies to factor on top of uncontrollable vacancies.At the end of the day, do what fulfills you.

Otherwise, it sounds more like gambling than investing.

Quote from @James Gamble: Quote from @Joe Summer: Quote from @Greg O'Brien: @Luis Espinoza I would say you are better off finding a good asset protection/biz attorney and CPA combo.