I received 6 proposals for the work and originally had 10 companies looking at the work. 

I know I will have to go three or so stories high, but how do you decide on the what density to propose to the city?

Tobyhanna township is proposing to limit the rentals to 10% of the houses.

On the flip side, I would encourage investors to invest because it makes sense as a solid investment and NOT for any proposed tax benefits.

not sure why no one else proposed this. 

The problem with the reverse method you propose is I would have a payment for the 401k loan around $300/month and then the holding costs of the mortgage until the refinance so roughly $400-500 for a total of say $800 To me it seems like the more cost effective route to use the bloc to purchase and 401k loan for rehab.

Adding closet organization and cosmetic improvements are likely to add another $5k.Thanks, ParrisHow big is the proposed kitchen?

In my opinion, this option surpasses the two you've proposed.

Probably less or no regulation in a place like that, but always good to check with the city and also good search for the city to see if there are any proposed regulations or dissention in the city. 

Since I live in a fast selling market I will most likely not have 30+ day for the board to review my proposal.