Regarding the rent, I just used the average rent for 2 bedrooms in KC (from rentcafe) and decreased it by $50.

For every 1% interest rate increase the affordability will decrease by 10% until few can afford these $8000 monthly payment per mortgage.

Of course I want to decrease my tax liability, but I also want to be able to show the banks how much positive cash flow I'm earning in order to help me qualify for next years investment properties...When reviewing tax returns for income to determine eligibility for a loan, do you look at gross rental income or net?

So in other words, all I'd be doing is locking more of my own money that I can't use into in the house, while subsequently decreasing my cash flow to get any of it back.

Can you decrease them at all? 

Did your income decrease?

Decreased inventory is a huge factor also. 

@Dimitri PaspalarisIf you do sell the stocks, be aware that you may have to pay tax as a result.You may be subject to favorable capital gains tax rate if the stocks are long-term.To avoid the tax hit, you may want to also consider selling stocks that have decreased in value.

Even if the market turns I don’t think rents will decrease much.

@Curtis Mitchell closing cost are going to depend on the lender and can sometimes be negotiated to have the seller include closing costs in the purchase price to decrease the total amount of cash you outlay.In regards to PMI, that is usually an additional percentage of the loan that is added to the payment each month.