This would produce a much lower top line revenue but my net profit would be potentially higher because I am capturing a high percentage of the rent collected.

Why do you want to trade a loan with lower interest rate and lower mortgage payments for one that is higher in both instances.I think your Cash Flow may be a little optimistic.  

Is it really possible to purchase a home lower than market value?

So it’s better for me to refinance to lower the mortgage payment and get more cash flow?

I imagine for a rental property you would want to stay towards the lower end of that I know I would.

Write-offs, knowledge to lower my taxes substantially, write-off's you don't commonly think of, things like "paying your kids 12k a year", and "using 'vacations' as 'team building' exercises for said employees, etc.3.

But it could be more difficult if you work 6-80 hours/week and buy properties that require extensive rehab/have lower quality tenants. 

However, using a HELOC to finance your next property will probably be easier (if you're buying another "project") and cheaper (you'll likely get a lower interest rate). 

Always be researching ways to increase your income instead of lowering the expenses.

This owner is not willing to lower the price so I will be walking away from the deal.