I know some areas require long term leases - perhaps people (owners and renters) ought to fight to have that changed in those areas - it's a horrible law that serves nobody well.This thread is about tenants with no credit.

Talk to them just to make sure you are not fighting a bigger known issue.

I felt the same way about their conflicting restrictions but ultimately, decided it was better for me to just push forward with 800 sq ft then try fight an uphill battle.

At the end of the day you will pay more to fight this than the cost of the line, which again seems like it already needs to be replaced. 

That said, fighting over that is a waste of time at this point. 

If it doesn't generously cash flow, cancel today and start fighting for the EMD.

He would like to get it settled without a fight and without the time delay, if possible, so he should be reasonable to work with (as long as you are also reasonable).If the city wants the big project badly enough to actually take your property by eminent domain, you are in a position to get the city to agree to some rezoning or special consideration.

-Will there always be an element of vacancy I will be fighting due to the large amount of bedrooms?

Haha.Sure there are good residential deals out there right now but they are few and far between and everyone is fighting for them.  

And with no EMD being held by escrow, this is an even easier case as the two parties will not fight over who gets the EMD and who is in breach of contract.