-Interest Rates going up is a good thing; we were dangerously close to negative nominal rates and that has some scary consequences that a lot of people never fully appreciated.

There could be some discount but it will be nominal at best. 

I think in general, real appreciation (nominal appreciation less inflation) will be near zero if not negative.

If it were me and I were looking at the 20 year span of holding this property in this current financing, I'd look at the cheaper loan as being an advantage for 12 years (2 years for the cheaper fees to catch up to the cashflow difference and 10 years earlier payoff) and the more expensive loan as being an advantage for 18 years - i.e. 18 years of higher positive cashflow.In the end we're really talking about nominal amounts here but as a matter of principle, I always keep my eye on long term cashflow.

From year 2 onward, the ROI further decreases, seeing as the yearly nominal gain is still €9000, whereas the net equity increases.I apologize if this was a bit extensive, I was partly writing this to recap some thoughts for myself :) If anyone has come across similar markets and/or knows of ways to handle this, any input is highly appreciated!

However, this is a nominal gain.

Because (a) you have a profitable deal and (b) your $15,000 does not bear an interest (or has a nominal interest).The final deal that you negotiate will have to be based on your relative negotiating positions but I suggest that you start with something similar to what I have mentioned and see how far you can go.

If you're in such a tight financial situation, change your objectives on this deal from making $30k to making a nominal amount and learning from the experience.

This gets you to a value.Yes, the 50% rule includes some nominal vacancy, and you're double counting this by subtracting off your actual and economic vacancy numbers.

(That is, the "real" interest rate does not change much and it is the nominal rate that changes.)Here is a set of hypothetical numbers to demonstrate my point.Let's say the NOI is $100K today and the interest rate (cost of capital) is 10%.