A stress test involves preparing for the rare "crisis," a once in a life time event. 

Ideally, both.However some reasoning I have seen and feels logical is as follows:If you reduce your expenses by $X, you have saved $X.If you increase your income by $X, you have generated $X - taxes - value of time worked to earn that money - any other factors.So in terms of low-lying fruit (what is easiest/quickest to accomplish) cutting expenses AND THEN SAVING THE DIFFERENCE is what I would recommend doing first.My wife and I put this into practice. 

It went from negative wording such as 'must sell' and 'reduced price' in capital letters.

I run comparisons for 90 days only, actively hit the streets and personally go out and talk compassionately and empathetically to home owners in foreclosure to work with them in offering a potential exit strategy, avoiding foreclosure for many homeowners and saving homeowners in foreclosure a ton of stress.

Accepting any payment that reduces a sale price is a financing arrangement under Dodd-Frank.Your first one, have your attorney do it or at least review it before you execute anything.Good luck :)

This reduces surprises, lets us emphasize to the tenants what we need them to do and what the unit should look like after they vacate.

Let them know that this stress is not more important than they are and that they are your priority - not a house. 

So just wanted to put that out there for you to keep in mind.Second thought, and I can't stress this enough - investing is a VERY personal thing.  

Closing costs on both the sale and purchase also factor into the calculation.1) purchase price plus your closing costs is your initial basis.purchase price $100,000.00purchase costs $2,000.00initial basis $102,000.002) depreciation reduces your basisvalue of improvements $80,000.00annual depreciation $2,909.09depreciation after 10 years $29,090.91basis after 10 years $72,909.093) closing costs on the sale reduce your net return from the saleselling price $150,000.00selling costs $3,000.00net selling price $147,000.004) net selling price less your basis is the total gaintotal gain $74,090.915) the gain is now split into unrecaptured depreciation and capital gainsuncaptured depreciation $29,090.91cap gain $45,000.006) And the tax is computed on eachrecapture rate 25%cap gains rate 15%recap tax $7,272.73capital gains tax $6,750.007) add them up to get the total tax billtotal tax $14,022.73Do notice that each year you had a deduction of just under $3000.  

Said he would reduce it to 50k (before he knew about the basement issue) Basement wall/footing needs replacement (quoted out at 17k) before any remodeling can occur.