I have noticed a decrease in some of my sec 8 tenants rent but it was because one of the children/tenant on the lease with them has started working or makes more money than what was reported and that counts as income for the household.

Also, they probably already pay for some insurance, so that could decrease the costs of your coverage.

Values are steadily increasing and crime is decreasing as people move in and spread out. 

I've worked with real estate investors and landlords for years by providing asset protection strategies to dramatically decrease their chance of being sued while also protecting their equity and assets in the event of any type of suit.

Decrease the monthly payment, increasing cash flow.Is it true that even though the property is financed through owner occupied FHA, I can move out before one year and rent the unit I'm living in?

So I spend some time on RE, but have been decreasing that time as my portfolio has grown.

The portion that is principal decreases the amount you owe on the loan and therefore increases your equity.

Also the 50% of your expenses is just a rule of thumb and you may be able to decrease this number to increase your cash flow and COC return. 

It would allow us to both recoup our initial investment and hold on to the property, granted the monthly cash flow would be significantly decreased with a new loan amount.  

Further, because of the neighborhood, this is a "Class A" property and I could easily get a very responsible tenant, which would further decrease the likelihood of unexpected expenses.Eventually, we will utilize our current residence as a rental property and it would be nice to own the entire structure (2 town homes).I apologize for the long post and I appreciate any input that anybody has related to this potential "deal."