I would purchase all cash looking for a minimum of 10% reduction for the cash offering and then refinance it after closing.  

We are hoping that rates come down enough that after we refinance we will be able to move out of the property and hopefully have rents cover PITI payments.I realize that until we refinance, we wont be gaining any equity in the form of principal reduction, but we are okay with that for a couple years because we would still be gaining some equity in the form of appreciation and renovations.Does anyone have any comments or feedback about this strategy?

The reality is that if you analyze an Investment for it's Long Term ROI, you won't be using simple formulas based on Cash Flow Now.Those that are arguing Cash Flow versus Appreciation need to add at LEAST the Mortgage Balance Reduction and the Tax Savings.The problem is Education, therefore, there will always be a discussion which pits Cash Flow versus Appreciation when the real conversation should be:Given the over all 10 year holding period, what would be the overall return, taken into account:1) Cash Flow2) Appreciation3) Mortgage Balance Reduction and4) Tax Savings5) Repairs and Renovations6) Expense and Revenue increasesetc.A typical Chart in my spreadsheet looks like this:The BIG GREEN Number is an Internal Rate of Return and it shows that, according to my CONSERVATIVE Assumptions that has been built into this spreadsheet, it will give me a 15.34% IRR over 10 years.What I see from other postings is no mention of the overall Return.

Given the inspection findings, you have a basis to renegotiate the purchase price or request seller concessions, such as a price reduction or credits at closing to cover repair costs as well.To do a proper analysis on whether the purchase is worth it, you'd need to calculate the expected rent after repairs and the ARV.

it was obviously worth it to get the reduction, but it was an extremely frustrating process. 

So, if interest rates are a buyer’s primary reason for staying on the sideline, I recommend seeking opportunities to negotiate a reduced interest rate from a seller or looking at new construction, where builders are offering rate reductions and other substantial incentives.

My investment strategy revolves around viewing cash flow as a tool to build reserves for both short and long-term capital expenditures.One key aspect of wealth accumulation in real estate, as you rightly mentioned, is the gradual reduction of your principal mortgage balance by others and the accrual of forced equity and natural equity through market appreciation.I operate Elevation Appraisal in the valley and serve as an agent with Windermere Bozeman.

Hello,So the inspection report came back with these red flags, the offer for the house was 300k, then i asked for 25k reduction and they take care of all the hazardous stuff but they said IT ok for 25k but you take care of everything.

Even a small reduction in income can have large effects on the values of these properties.

Can do non recourse at a 10% ltv reduction on bridge loan