If this fee is omitted in your cost you are potentially decreasing the value of your own property & your returns will be lower than originally assessed in your underwriting.

Is there any decrease in the rents that are paid out?

The strong relative increase in housing inventory comes from an 18% increase in new listings (new homes hitting the market), a 146% increase in active listings (current homes available on market), and a 14% decrease in pending sales.  

I am confident we will cash flow in the first year, and I don’t expect rents to decrease in this area, so that’s good news.

It’s a race to the bottom for pricing when both supply increases and demand decreases.

But you are correct if I were to refinance the cash flow would decrease but only minimally. 

Being in even 3 separate markets will dramatically decrease your risk vs owning a larger building in one market. 

In a fair model and as an LP you get a return ON capitol for any pref or excess cash flow from the deal (It is not desirable for this to be a return of capitol as that would decrease your capitol account) and this is taxable (however usually offset by depreciation).  2.

Some cities get caught in a cycle where affluent tax payers move out, causing tax revenue to decrease, making problems worse.

The shorter amortization will only decrease your interest payments.I would just be mindful about generating expenses just to pay less tax.