Similar lease, with a couple risk-reducing provisions (requirement to commercially insure, etc).

I've been looking for my first deal on MLS and also found that purchase price has to be reduced to like 60% of asking price in order to get good cash flow. 

Paying all cash reduces your cash on cash return, but provides excellent cashflow and minimal risk of loss.

The only way I still stay competitive is being able to reduce my financing costs and construction costs.

Any ideas about reducing cost?

For these reasons, currently, the utilities are included in the rent for all units.Here are a few pictures to give you an example:My partner and I currently have a vacancy and decided to put some capitol into the unit to attract working class tenants and reduce turnovers.

That reduces the costs risk for 60% of the project costs (YAY!). 

The tenant is about to re-up for a two year lease at her current rent, which is now below market (trade off, I'd rather reduce the turnover than risk scaring her off by bumping up the rent).

(Union City has, recently, reduced the amount of rent increases for rent controlled buildings from 3.5% per year to CPI or 3.5% (whatever is lower, but, almost certainly, CPI), and there are also additional restrictions for protected tenants/senior citizens.) 

The main reason for this decision was to reduce my time investment.