If it's priced lower, it will get bigger interest, but you just don't know the quality until they officially apply.

List prices are high and nobody wants to go lower than 93-94% off list.  

I used a 401K loan to purchase my first investment property.Some things to consider if doing so - your future paychecks will be lowered to pay back the loan.

Lower the rent and take the two year lease or something different?

We then try to be on the lower end of the market pricing (not the cheapest but in the lower half of the comps).

Lower tenant quality? 

I plan on offering him a lower cash offer so I don’t want to show too much interest to where he stays firm on the 35k.

Your better off disclosing this to potential buyers for a lower rate just to move on. 

The schools in town are seeing lower enrollment and continued families moving away.

Prepaying your mtg won’t lower your monthly payment.....you just pay it off earlier on the back end if you keep it that long and move your payments further down the amortization schedule, with more of the payment going to principle.$10k/year in negative cash flow verses your appreciation....your gamble and your call.