Depending on the case, a .125 reduction can cost less than .1 point and its definitely not linear. .125 can could cost .1 points while .25 costs .5 and .375 cost .6.

I would recommend having some weight and breed restrictions if you are renting out a smaller apartment/house. 

@Hai Loc Yes, and i have done it before but not in the US.I'm asking for Principle Reduction Payment Schedule. 

This house just had a 20% reduction and an increase in activity this weekend.

I don’t know your area of Florida, but here in Tampa a 4/2 is worth it’s weight in goal.

What is Estimated Principal Reduction and why is it added to my total return before taxes? 

I do see the value in being able to use FHA financing to acquire and potentially fix cover your rehab costs but based on the necessary repairs I would ask for either a significant reduction, the current owner to complete all major repairs, or just move on. 

Then again the only comp I could find for this went for less than this place.I'm on the fence with this place...If I could get a 50K price reduction from inspection, I'd be more likely to go for it, but as it is, it seems like lower end tenants with attitude, no cash flow, and a lot of risk.

If everyone would take these steps, and hold the tenants accountable for some of the unbelievable damages they can cause with impunity, there would be a reduction in the number of "bad" tenants, IMO.

I run the risk of having to do some pretty expensive electrical updates (the structure seems to be built to code and no outstanding issues that are obvious) as the house was built in 1978 and the addition doesn't meet current code as far as number of outlets, separate circuits, and arc-fault circuits installed.In the current market I'm thinking I could sell it as is and probably offload it with a $10-$20k reduction in market value.