I invest primarily in a lower cost area but also own property in, and am looking in, a higher cost area.

In my case, flood insurance was under $1800/yr and for the numbers made complete sense for me as a good deal with that added cost.4) Flood zone AE does not directly impact resale value, but can reduce the number of buyers considering your property which can lead to slower sale through time and potentially lower prices.  

I thought there was a chance that one could use real estate to directly lower their main source of taxable income (such as a w2).

Further, running a very quick and simple valuation based on $900 rents, 8% vacancy, 25% op exp margin, and a 9% cap rate, I'm coming up with an ARV of around $83k, so I'd pass if I were you unless you can get a much lower purchase price.

Hello, We have a triplex in a lower-income neighborhood in the Tampa Bay area.

Yes, that means he will have to give up his 3.5% rate (or whatever it is assuming lower then today rates) but it is what it is. 

I get a new tenant at a LOWER rent, ALWAYS late, and then ... the septic tank GOES TO HELL

This does not align with buying most buildings in cash.Once you progress in your investing efforts you may come across more UHNW individuals, family offices and institutions who would take the lower return for limiting risk (all cash deal).

Here’s what I recommend instead:Offer Value Beyond Price: Rather than just lowering your rates, focus on adding value to the guest experience.

They do not appreciate like actual real estate and your caliber of tenant can be lower which can bring with it its own problems.