You vary the intensity by adjusting the on time vs. the off time.  

Answer: they believe it will produce the highest risk-adjusted rate of return on invested capital.

A smaller risk would be getting an inspection done and then adjusting your price - you are at risk for the inspection costs since it could be sold to a better offer.It won't really matter closing costs vs. price reduction since they will look at the net price.

I have take a long hard look and adjust my strategy.

I was wondering, when do you guys decide if you should pay for the gas and electric bills when trying to adjust for a higher cashflow?

Since this is being done within an LLC (as it should), and since there are different classes of membership interests (2 that I can ascertain), there are multiple factors to work out, some of which apply even when there's just one class of membership interest:How initial capital contributions, for each given class, are booked.How subsequent capital contributions, if any, for each given class, are booked.How member loans are booked.How each member's capital account will be handled pursuant to Treasury Regulation §1.704-1(b)(2)(iv), and how reevaluation of said accounts will take place per Treasury Regulation §1.704-1(b)(2)(iv)(f), to conform with §1.704-1(b)(2)(iv)(g).How distributions will be allocated, including profits and losses, along with any resulting adjustment of percentage interests.How tax allocations will be handled - and if the book value of any company property is adjusted per Treasury Regulation §1.704-3, how that affects member allocations.I have not even covered every item that must be addressed (including voting rights, depreciation allocation, cash flow vs liquidation allocations (as in "when we sell a property - who gets how much of the appreciation, but what about the recapture, etc, etc.")).Insufficient information... and it's time to meet my wife for dinner.

They don't do any adjustments for lot size on the appraisals down there?

This is fine, you just ahve to adjust your purchase price. rehab costs.

You make adjustments to the price based on how much it would cost to bring your house up to their standards.

I would suggest going with the neighbor to the County and apply for a Lot Line Adjustment (might be called something else in your area).