At the same time the reduction is subject to a wage or basis limitation so it is not an automatic reduction. 

And now you're also going to have to amend a tax return to claim a tax reduction for a process that you didn't really do correctly but meant to at the time but didn't record it until now - whew!!!  

That resets the sales clock and masks price reductions, both important pieces of information for buyers.The practice, legal but under fire in other states, can be helpful to sellers and their agents, who want properties to seem as attractive as possible.

I actually did this for my rental (2 yr lease with a $50 reduction per month in rent from the original asking price) so over the 2 yr period I reduced my cash flow by $1200.  

If they do not throw it in, they may discount it  (not that it is expensive to start).The underlayment will provide you with cushioning, making the floor more enjoyable to walk upon, and a bit of sound reduction ... if anyone upstairs walks across the laminate floor in heels, the folks downstairs will appreciate the underlay.

I used to get $1,475 a month for years, but that particular city has seen a reduction in rents.

For that reason, I suggest that investors take the longest term they can get and make significant reductions to principal now, because in 5 or 7 years, that lender could say no and you will have to refinance elsewhere.

No one can answer this with certainty (if they say they can...they're lying); however, most arrows point to YES....So now you will be selling an EXPENSIVE HOME down the road when money will be more expensive....which might equal less buyers or a forced reduction in price.

The rents will cover a $14,000 principal reduction annually...and that only grows as time goes on.Its not the perfect property.

My rule of thumb for properties in the Inland Empire of Southern California is that properties 1-30 days on the market will see no more that a 3% reduction - enough to cover buyer closing costs. 30-90 DOM will see a monthly price reduction and maybe 5%- to 8% tops.