As we move into winter there has been an uptick in foreclosures but there has also been a decrease in overall supply so I've yet to see a loosening of the market for investors.

If you buy in a location where prices and rents are increasing below the inflation rate, your only option will be to decrease your standard of living over time.

If you can qualify comfortably and are willing to take the risk, then jump.Another option is to get into contract to purchase the new house, close and then sell the existing one which mitigates (reduces) the risk of owning two properties in a market that may decrease in value.

Even the decrease in 10% rent can have adverse effect on cashflow.I am also open to do a cosmetic repair where I can improve some of the stuff to compete with newer homes in the area (say granite countertops and stainless steel newer appliances).

As the supply of buildable land decreases in many markets, it pushes up the value of existing homes.

It is more likely to increase than to decrease.

When I pay in November, I would credit cash (decrease an asset) for the first 10 months of taxes and debit property tax payable (decrease a liability) for the full amount (10 months). 

If rents increased 2% per year, your buying power decreased by 57% after ten years.Inflation is why you should only buy properties in a location where rents and prices are increasing at or above the inflation rate.

This would increase your returns while decreasing your risk.

@Sandra ArnoldIf you are a real estate agent who is / will be involved in real estate, you want to see if Real Estate Professional status is a designation that you can claim in the future.Having a retirement account and deducting health insurance costs are some ways to further decrease your real estate agent commission income.Best of luck