Quote from @Devin James: In one of our development projects, the City staff asked us to remove 40 units from our concept plan.This wasn’t requested by the City Commission at a formal hearing, it was the opinion of the staff.Our original concept already proposed fewer units than the current zoning would have allowed.Here’s what erasing 40 units means:- 40 fewer homes for buyers- Over $1M in lost profit for our team- Fewer tax dollars and impact fees that could’ve benefited the City’s infrastructure & servicesWe gotta get betterEveryone wants more affordable housing, but not everyone wants to do what it takes to achieve it we never listen to the recommending bodies. we move for city approvals and work closely. the other thing we do is keep going back to the same groups over and over and over and over every month on the same agenda and make very small reductions like 2% or 4% and that reduces and beats them down eventually they accept what you want. it's just before beating a dead horse. we keep tabling until they give us something we all agree on then we go to vote. in our city in columbus we have to get recommendations but that's our strategy. we used to come out as aggressive as possible. we typically study developments in the area and keep it very similar in terms of density. we have a track record of very controversial projects and litigation and not taking no as an answer. after a year of that haha I can tell you it's not worth it. now we are more relationship based and buying the right kinds of plots of land. if the numbers don't work on the front end don't do the development. 

Here's the bigger lesson I learned: If a tenant asks for special considerations, or reduction of fees - those are ALWAYS the ones who are the problem tenants.  

I think we're priced pretty well when looking at comps now, and we did one price reduction.

Is it worth a reduction of an already very small probability of an IRS audit?

There is an old saying ( Pigs get fat.

I think you need to treat those 2-4 buildings almost like larger building looking for upside in rents and/or reductions in expenses in order to get it to cash flow.

Is there enough fat on the deal.  

It would allow me to see if PM is a good fit, see how the reduction of cash flow feels, and free up some of my time/headspace. 

While some reductions might increase short-term costs for investors, a more balanced budget could stabilize inflation and interest rates over time.

The builder offerred $15,000 credit to be applied, however you wished EXCEPT can not be used for price reduction.