In that case you can also take bonus depreciation and accelerate 100% of those costs into the first year, further decreasing your tax liability.

I don't know how bad it'll be but we can assume that properties in these areas will see a decrease in value.

Increasing your portfolio size will INCREASE your margins...not decrease them.Using the BRRRR method will actually slow you down...not speed you up,...and WILL decrease your margins.

I’ve been with them awhile so slowly my down payment percentage has been decreasing. 

Instead, the % of rent needed for capex should decrease as rent increases. 

I know my cash flow will decrease to due years amortized, but am I overthinking something here?

@Andrew McCotterAgree with Joe but I’ll state it in terms of ROE because I look at number *and* percentages ;-)Take the formula for ROE:Return on Equity = Net Cash Flow/Total Equity InvestedFinancing will reduce your net cash flow by the amount of debt service which decreases ROE.

You wouldn't want to buy into an area that is declining rapidly where the tenant quality is decreasing along with the area.Bureau of Labor Statistics: Current Employment Statistics (CES)The Current Employment Statistics (CES) program produces detailed industry estimates of employment, hours, and earnings of workers on payrolls every month.

I should add, for any American readers that properties meeting the 1% rule in my area are extremely rare.My question is what can I do, in terms of refinancing or otherwise to decrease my monthly mortgage payments to a level where I can gain a cashflow on this property?

Hey @Joseph Schommer, If you are interested in moving out of the Bay Area, then house-hacking could be a fantastic option for you to decrease living expenses while also increasing cashflow.