We just got back value and there is a 200k decrease in value from the appraisal completed in October 2021. 

Save your money all that good stuff buy something that will decrease your amount of living expenses and one day you can turn it into passive income. 

However, interest rates will most likely rise very soon, decreasing your buying power.  

Thanks in advance  as  you have a  definite  use  in the  near future for these  funds -  you will want to  keep them  safe and  liquid  ....don't  look to find the  highest  return if this has a chance to  decrease your  asset amount  .... in months  you wont be looking at  much   growth  at all   if you want to keep it safe  

A value add strategy forcing appreciation can also eventually decrease risk (after an initial higher risk period during renovation and lease up), once rents have been increased and the asset can be partially, or fully de-risked by returning capital via a refinance. 

In some cases, the tenant would actually see a decrease on a month-to-month basis.Then, re-visit it periodically to see if any changes are needed.I am considering offering this to a tenant who was surprised by a big jump all at once, but I'm wondering if there are issues with this that I may be overlooking.

So the first question is, why has the guaranteed rate in WL decreased?

assuming the monthly payment was no longer reported on the credit report, and the income was the same then yes the DTI would decrease.

And with the demand exceeding supply by a large factor, no need for sellers to take on the extra risk, liability, and decreased credit capacity of selling subject to.

This increase has a 1 to 1 relationship of the cost in equity to the value of the property.3 - As the PV increases, and the equity increases, the "value" of that equity decreases...as does the CF,...which remains the same throughout.Example:  $100k property1 - 20% down = $20k DP and the purchase of $20 in equity.