That a whole year of cash flow, appreciation, debt reduction, tax benefits/depreciation you could have had in any home during that time. 

See 3 above.Now that I've answered your questions, to my mind, the bigger issue is the reduction in the number of transactions that can qualify for transactional funding.

So many people say they want to lose weight, but not how much.

Those I do this for, and myself, have had a huge reduction in mistakes, and costs due to them, since my drawings started to be used. 

Way too much risk in waiving inspection.I assume it's the reduction in time to close where this would give a little advantage.

I'm also aware that 99% of borrowers walk away, not sure just guessing there, and probably in most cases there is not a great deal of equity, but if there is and you lend/foreclose to gain properties you'll have several issues if someone cries foul, you can be sued and you'll lose as the concept of collateral is not as a profit center but to ensure that a lender doesn't lose amounts lent.That's true in all states, but can be more of an issue as to the disposition of collateral under state laws, imposing types of sales, reduction of price or holding auctions.

Having a pm will take a lot of weight off as long as you do your due diligence on them.

The positive definitely out weight the negative in my opinion!

Principal reduction does not play any role in Net Income calculation.

He told me, "As long as you show up at the county appeal, they'll give you a mininum of 20% reduction."